Macarthur Coal bid Gloucester Coal Collapse

Submitted by Share Trading on 20 April, 2010 - 10:39

Macarthur Coal's (MCC) bid for Gloucester Coal
(GCL) has collapsed as Noble Group, the target's largest shareholder (at 87.7 percent), failed to persuade its investors to back the deal. Noble noted on their website: "Noble Group wishes to announce that the merger proposal between Macarthur and Gloucester was soundly defeated by shareholders in a vote held in Hong Kong at 2.30pm today."

Macarthur Coal is persuing Gloucester despite being a target itself with Peabody Energy and New Hope bidding for the company. Peabody has a bid of $16 per share but the company's shares has surpassed the bid offer closing the first day of the week at $16.54. While New Hope's bid is lower at $13.60 per share.