Those who doubt the long term prospects of mining company Teck Cominco should have a chat with Jack Cockwell.
On Wednesday, Mr. Cockwell is up for election to the board at Teck. For those who don't know the group chairman at Brookfield Asset Management - he's kept a low profile in the past decade - well, if Warren Buffett is the sage of Omaha, the 68-year-old Mr. Cockwell is the sage of Brookfield Place. He has unmatched financing and corporate strategy skills, earned during a career that's included many wins, and more than a few hard-fought deals and stare-downs with lenders.
If shareholders give their approval, Teck will become one of the few outside director assignments Mr. Cockwell has ever accepted. His only other outside corporate board is at Astral Media.
Mr. Cockwell's decision to join Teck's board reflects the respect that comes with a three-decade relationship with chairman Norman Keevil. He's also got long, strong ties to Teck CEO Don Lindsay, former head of investment banking at CIBC. Brookfield, an $80-billion conglomerate, has cut loose what were once extensive resource company holdings, but Mr. Cockwell should still be able to hold his own in any board discussion of commodity markets, and how to play them.
Teck, of course, is in the midst of a well-documented recapitalization, as it moves to pay down debt assumed in last year's $14-billion acquisition of coal miner Fording. Mr. Cockwell's arrival should be seen vote of faith in this refinancing, as no director is going to knowingly step on to the board of a sinking ship.
The recent spike in Teck's stock price indicates an increasing number of investors share Mr. Cockwell's faith: Shares have more than doubled in the past two months.
Andrew Willis