March 6, 2021

Macarthur Coal Rejects Takeover Bid

Macarthur said on Monday it was in talks with a number of interested parties after talks with Peabody, which had been conducting due diligence on the company, failed to result in an agreement.

ArcelorMittal, the world’s top steel maker, and Peabody, the largest American coal company, want Macarthur for its reserves of cheaper, cleaner pulverized coal coveted by steel makers.

Peabody had agreed to formalize its original offer of 15.50 Australian dollars a share, but during the due diligence process it indicated it would be willing to increase the offer price to 16 Australian dollars a share subject to conditions, Macarthur said.

However, Macarthur said it rejected that proposal because the conditions would have stopped it from talking to other suitors and considering a superior offer.

Macarthur advised shareholders to take no action.

Peabody said last month that it intended to bid 15.50 Australian dollars a share minus the amount of Macarthur’s final dividend. It later agreed that up to 16 cents of the final dividend would not be deducted from the offer price.

Article source: http://feeds.nytimes.com/click.phdo?i=e35c845fbea3c18cccae441120254bb7

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