Peabody Places New Bid to Gain Control of Macarthur Coal

Submitted by Jim Thesiger on 7 April, 2010 - 06:01

Peabody Energy, a US based coal company has boosted the stakes in its takeover bid to win the control of Macarthur Coal (MCC), by coming up with an improved takeover bid that worth $3.56 billion. It is to be mentioned that the company increased the offer per share by $1 within a week after its initial offer of $13 per share got rebuffed, provided Macarthur agree by the end of business today to postpone a shareholder vote which was scheduled for April 12th on the all-script takeover of Gloucester Coal- something that worth $1 billion. The Macarthur board is expected to hold discussions regarding the latest proposal this morning and advised the investors (shareholders) to avoid taking any action.

On the other hand, Noble Group which is about to obtain 24 percent of Macarthur through the Gloucester takeover agreement stated that it may come up with its own bid in order to obtain 11.7 percent of Gloucester which it does not own in case the Gloucester takeover by Macarthur gets abandoned. The latest development took place at a time when the corporate world was experiencing some extraordinary exchanges between Peabody and Noble with one of the Noble statements saying: "What we would really like is for the Americans to go back home.". The Hong Kong based trader Noble alleged that Peabody is attempting to ruin a fair agreement for something that it termed as “short-term payoff”.

Peabody on the other hand came up with their response after the Noble statement terming the claims of the trader as "oddly personal". It is to be mentioned that Peabody is currently holding talks with ArcelorMittal and Posco and China based trader Citic- the leading shareholders of Macarthur regarding a proposal which will allow these investors to hold the stakes in a private company alone if it can gain the control of Macarthur Coal.