Macarthur to hold talks with Peabody
Source: Agencies |
April 17, 2010, Saturday
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Print Edition
Print Edition
AUSTRALIAN miner Macarthur Coal Ltd yesterday said it will hold talks with Peabody Energy after two major shareholders said the United States company's latest takeover offer of US$3.8 billion is worth considering.
Macarthur, a major producer of pulverized coal used by steel makers, rebuffed two earlier Peabody offers as inadequate but the US company raised its bid on Thursday. Peabody wants to expand in Australia's coal industry to profit from rising demand from China and other Asian markets.
Macarthur said it was not making a recommendation to shareholders on Peabody's increased bid of A$4.1 billion (US$3.8 billion), or A$16 a share -- an improvement over previous offers of A$13 and A$14 per share.
The Australian company said it contacted its three major shareholders seeking feedback on Peabody's latest offer. The two that responded -- ArcelorMittal SA, the world's biggest steel maker, and South Korean steel producer POSCO -- own a total of 25 percent of Macarthur.
POSCO offered "in-principle support" for the bid, while Luxembourg-based ArcelorMittal said it warranted "due consideration."
There was no immediate response from Macarthur's biggest shareholder, China's Citic Group, which has a 22.4 percent stake.
Foreign investors are rushing to buy into Australia's mining and resource industries in hopes of profiting from future demand. Some Australian critics object to selling control of natural resources to foreigners, but many target companies welcome the influx of capital.
Macarthur, a major producer of pulverized coal used by steel makers, rebuffed two earlier Peabody offers as inadequate but the US company raised its bid on Thursday. Peabody wants to expand in Australia's coal industry to profit from rising demand from China and other Asian markets.
Macarthur said it was not making a recommendation to shareholders on Peabody's increased bid of A$4.1 billion (US$3.8 billion), or A$16 a share -- an improvement over previous offers of A$13 and A$14 per share.
The Australian company said it contacted its three major shareholders seeking feedback on Peabody's latest offer. The two that responded -- ArcelorMittal SA, the world's biggest steel maker, and South Korean steel producer POSCO -- own a total of 25 percent of Macarthur.
POSCO offered "in-principle support" for the bid, while Luxembourg-based ArcelorMittal said it warranted "due consideration."
There was no immediate response from Macarthur's biggest shareholder, China's Citic Group, which has a 22.4 percent stake.
Foreign investors are rushing to buy into Australia's mining and resource industries in hopes of profiting from future demand. Some Australian critics object to selling control of natural resources to foreigners, but many target companies welcome the influx of capital.
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