Earlier Monday, the board of Macarthur Coal, the world's largest producer of pulverized coal product that is used to make steel, rejected the bid, calling it "opportunistic."
The offer, for A$15.50 a share, "appears to be an opportunistic attempt to acquire Macarthur at a time of global economic volatility and regulatory uncertainty in Australia and fails to reflect Macarthur's industry leading position and the growth potential of its unique assets," said Macarthur Chairman Keith DeLacy, in a statement.
Macarthur said it told Peabody, the U.S. coal mining company, and steelmaker ArcelorMittal that it would recommend a AU$16 a share offer, based on certain conditions such as Macarthur not holding talks with rival suitors. But the parties couldn't agree on a deal."Peabody and ArcelorMittal believe our bid is compelling," said Peabody Chairman and CEO Gregory Boyce, "And we have decided to take this attractive offer directly to Macarthur shareholders to provide them with significant value." ArcelorMittal, which already holds a 16% stake in Macarthur, and Peabody made their joint takeover bid for Macarthur around mid-July. -- Written by Joseph Woelfel
>To contact the writer of this article, click here: Joseph Woelfel >To submit a news tip, send an email to: firstname.lastname@example.org.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV