Proxy advisory firms support sale of Fording Canadian Coal to Teck Cominco

By Lisa Kerner

Charlotte, N.C., Sept. 22 - Fording Canadian Coal Trust said that both RiskMetrics Group and Glass, Lewis & Co. recommend its unitholders vote in favor of a plan of arrangement with Teck Cominco Ltd.

Fording independent trustees are also recommending that unitholders vote for the arrangement transaction at a special meeting on Sept. 30.

As announced on July 29, Fording agreed to sell all of its assets to Teck Cominco, a Vancouver, B.C.-based mining company, and to distribute the proceeds to Fording unitholders through a plan of arrangement valued at C$14.1 billion.

According to a Fording news release, the company's unitholders will receive $82.00 cash and 0.245 of a Teck Cominco class B subordinate voting share per Fording unit. The $82.00-per-unit cash payment includes a final distribution of $3.00 per unit.

Fording said the total per-unit value is $91.66, or C$93.76.

The European Commission approved the proposed sale, and approvals from the Canadian Minister of Transport and Korean competition authority remain outstanding, it was previously reported.

Fording, located in Calgary, Alta., is an open-ended mutual fund trust and one of the largest royalty trusts in Canada.

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