Street View: Finalizing divestment boosts Teck's returns, helps focus on copper
** Teck Resources TECKb.TO on Thursday saw the sale of its steelmaking coal unit to Glencore GLEN.L approved by the Canadian government with strict conditions to preserve jobs
** Deal expected to close on July 11
** Shares on Friday up 1.2% at C$69.85
BETTER RETURNS THAN EXPECTED
** National Bank of Canada Financial Markets (PT C$82.50, "outperform") says divestiture of remaining steelmaking coal business provides significant cash to bolster balance sheet ahead of next copper growth cycle along with returning cash to shareholders ($3.05 bln)
** Scotiabank (PT C$83, "sector outperform") says "given the clearly defined use of sale proceeds and the higher than anticipated capital return of $3.0 bln (vs. our expectation of only ~$2.0 bln), we view the update as positive for the shares. Teck remains a Top Pick"
** Bank of America cuts PT to C$87 ($64) from C$88 ($65) on foregone steelmaking coal free cash flows, reiterates "buy" on influx of cash from the deal
Reporting by Seher Dareen in Bengaluru
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