MACARTHUR COAL REJECTS PEABODY BID

Written on the 10 June 2010

MACARTHUR COAL REJECTS PEABODY BID

LAST month’s hottest takeover bid has finally dissolved.

Macarthur Coal Limited (MCC) has rejected Peabody Energy’s reduced $3.8 billion takeover proposal.

On May 10 Peabody undercut the proposed takeover value by $300 million amid market jitters around the Henry Tax Review and the European debt crisis, but in a statement today the MCC board recommended against the deal.

The MCC board have decided there is no basis for further engagement with Peabody, after major shareholder CITIC highlighted the company’s high long-term strategic value.

“CITIC believes that the long term strategic value of Macarthur Coal exceeds by a significant margin the cash offer price contained in (Peabody’s further proposal),” says a CITIC spokesperson in a statement.

CITIC currently holds 22.4 per cent of MCC shares, but the Brisbane miner hopes to buy back the Chinese group’s direct interest in certain operating assets.

Shareholders will vote on the CITIC transaction on June 30, in a deal which would also terminate CITIC’s marketing rights over Macarthur’s coal sold in China and India in exchange for a $110 million share issue.


Latest News

REBRANDING AND RESTRUCTURING LIFTS HELLOWORLD TO SOLID FY RESULTS

HELLOWORLD Travel Limited (ASX: HLO) has posted a profit before tax of $31 million for FY17, an 800 per cent incre...

THE MOTHER OF THREE WHO HAS SHARK TANK'S ANDREW BANKS AND STEVE BAXTER FIGHTING TO INVEST WITH HER

NOT every entrepreneur on Shark Tank Australia convinces the 'sharks' that their business is worthy of inv...

CORPORATE TRAVEL MANAGEMENT NOTCHES UP 23 YEARS OF CONSECUTIVE GROWTH

CORPORATE Travel Management (ASX: CTD) has reported its strongest ever full-year results, with a net profit increa...

REPORTING SEASON WRAP: TUESDAY HIGHLIGHTS

* BHP Billiton (ASX: BHP) reported full year net profit of $7.42 billion compared to a $8 billion loss in the previou...

Related News

THE MOTHER OF THREE WHO HAS SHARK TANK'S ANDREW BANKS AND STEVE BAXTER FIGHTING TO INVEST WITH HER

NOT every entrepreneur on Shark Tank Australia convinces the 'sharks' that their business is worthy of inv...

DARK DAYS AHEAD FOR AUSTRALIAN RETAIL AS REPORT FORECASTS MAJOR INDUSTRY ROUT

ALMOST 1,600 retail businesses are at risk of imminent collapse, including 21 major retailers with turnovers of more ...

REPORTING SEASON WRAP: MONDAY HIGHLIGHTS

* FORTESCUE Metals (ASX: FMG) reported net profit after tax (NPAT) of $2.64 billion for the year to June 30, up fr...

WESFARMERS BOOKS BUMPER PROFIT BUT SUPERMARKET WAR HITS COLES' BOTTOM LINE

SUPERMARKET giant Coles has posted its biggest slide in earnings since it was acquired by Wesfarmers (ASX: WES) 10 ye...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter