Tables turning in Macarthur bid: Peabody offer being considered

The board of low-volatile metallurgical coal producer Australia-based Macarthur Coal has announced that the company intends to enter discussions with St. Louis, US-based coal giant Peabody Energy Corp regarding its revised proposal to acquire the whole of Macarthur, postponing a stakeholder vote for the future of the company scheduled for April 19 to an unspecified date.
 
As SteelOrbis previously reported, Peabody revealed a sweetened third offer on April 15 to takeover the company for AU$16 per share or a total of AU$4.1 billion (US$3.8 billion).
 
The board continues to advise shareholders to take no action in relation to Peabody's proposal.
 
Meanwhile, a Macarthur press release said that South Korean steel giant POSCO, the third largest stakeholder in the company with 8.3 percent of shares, has confirmed its in-principle support for a Peabody-led privatization of Macarthur in the absence of a superior proposal.
 
The world's largest steelmaker Luxembourg-based ArcelorMittal, which holds 16.6 percent of the Macarthur shares, said that Peabody's bid merits further study.
 
Macarthur said that a response from Chinese investment group CITIC, which holds a 22.4 percent stake in the company, has not yet been received. CITIC previously gave open support to the Gloucester deal.
 
As SteelOrbis previously reported, Macarthur Coal Limited had announced on February 26 that its board confirmed a bid to takeover New South Wales-based Gloucester, which operates mines in the Hunter Valley and is largely owned by Hong Kong-based Noble Group. The coal producer is offering Gloucester shareholders 0.84 Macarthur shares for every one Gloucester share held or AU$8 a share. Gloucester has recommended shareholders accept Macarthur's offer, while Macarthur rejected previous proposals by Peabody and Australian coal producer New Hope.