Coal

[johnlw]

VIRGINIA GALT

Globe and Mail Update

July 29, 2008 at 8:56 AM EDT

Teck Cominco Ltd. announced Tuesday that it has entered into an agreement to acquire 100 per cent of the assets of Fording Canadian Coal Trust.

These assets consist primarily of a royalty in respect of Fording's 60 per cent non-operating interest in the Elk Valley Coal Partnership.

“In aggregate, Teck will pay approximately $12.4-billion [U.S.] in cash,” the company said.

Under the terms of the transaction, Fording unitholders will receive $82 (U.S.) in cash and 0.245 of a Teck Class B subordinate voting share per Fording unit.

“Based on the 20 day volume weighted average price of Teck Class B shares on the New York Stock Exchange, the proceeds to Fording unitholders represent a 18 per cent premium to the 20 day volume weighted average price of Fording units on the NYSE, in each case for the period ending July 25,” the company said.