MACARTHUR TO ENTER PEABODY TALKS

Written on the 14 May 2010

MACARTHUR TO ENTER PEABODY TALKS

THE feeding frenzy around Macarthur Coal Limited (MCC) has finally got a bite, with the Brisbane-based coal miner agreeing to negotiations over Peabody Energy’s $4.1 billion bid.

As a result the shareholder meeting on Monday to vote on Gloucester Coal-related transactions has been postponed.

Macarthur’s three major shareholders are divided over the proposal, with Korean steelmaker POSCO issuing its support, while Dutch-based ArcelorMittal and Beijing-based CITIC remain undecided.

POSCO, which holds 10 per cent of shares in the Brisbane-based coal miner, has issued its support for the proposal in a statement announced on the ASX today.

“POSCO confirms its in-principle support for a Peabody-led privatisation of Macarthur in the absence of a superior proposal,” the statement says.

“POSCO presently intends to retain its existing economic interest in the resultant private company structure.

ArcelorMittal, the world’s largest steel company which holds a 16.6 per cent shareholding in Macarthur, has issued a less committed response.

A statement from ArcelorMittal said:

“Although not providing (a) specific decision as to how ArcelorMittal will vote at any shareholders’ meeting, ArcelorMittal does recognise that the Peabody offer is one that warrants MCC giving it due consideration and providing them the necessary time for the five days due diligence that (Peabody have sought from the MCC board.”

CITIC, which holds 23.39 per cent in Macarthur, is also non-committal to Peabody's proposal at this stage.

A statement from CITIC said:

"Based on the current limited information available to CITIC about Peabody's further proposal, CITIC is not in a position to make an informed assessment enabling it to make a decision on whether or not it could support Peabody's further proposal."

Peabody’s proposal involves a bid of $16 cash per share, with the condition that the existing three major shareholders are entitled to retain their interests if they choose.


Latest News

DREAMWORLD PARENT COMPANY DEMOTES CEO DEBORAH THOMAS

ARDENT LEISURE, the parent company of Gold Coast's Dreamworld theme park, has reshuffled its core leadership w...

MELBOURNE SHOPPING CENTRE SELLS FOR $48m AS CHINESE DEMAND RAMPS UP

A MELBOURNE shopping centre has been sold for $48 million, bringing the total spent by Chinese investors on Victor...

HOW WEDDING WOES INSPIRED A BOOMING BUSINESS FOR MEGAN ZIEMS

WHEN she was dress shopping for her wedding in 2010, Megan Ziems (pictured left) was disappointed to discover a ma...

SPOTLESS REJECTS DOWNER'S 'HOSTILE' $1.2B BID AS IT PROMISES A STRATEGY RESET

CLEANING and catering services company Spotless has rejected a $1.26 billion takeover bid from mining services firm D...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter