This is an awful transaction. It is clearly designed to flush...

This is an awful transaction. It is clearly designed to flush out exercise of pre-emptive by Teck, but I question the sense of it.

My observations are:

1) the nominal value seems disappointingly low compared to the manor in which directors have previously described the asset (i.e. "world class"). I guess it's possible to have a world class relatively worthless asset.

2) in the absence of a cash offer, pre-emptive rights often have fairly complex methods to determine the price at which a pre-emptive operates. If the pre-emptive reference market value of non-cash consideration, there may be an opportunity for Teck to pay an even lower price. i.e. do we really imagine IMI shares will be worth the ascribed value??

3) on a personal level, I bought these shares recently on a bit of a punt on Zn price. What a bummer! Should have just gone long Zn futures...

4) in all fairness, I guess it just confirms the efficient market hypothesis and that the market is usually right. It's basically a worthless group of assets - just like the share price told us!

All good fun.