Macarthur Coal Attracts a Third Suitor

A third suitor has joined the fight to acquire Macarthur Coal, but the Australian miner rejected the bid, saying it didn't offer an 'adequate premium.'
Author:
Publish date:

SYDNEY. Australia (

TheStreet

) -- A third suitor has joined the fight to acquire

Macarthur Coal

, but the Australian miner rejected the bid, saying the offer didn't represent an "adequate premium for control of the company."

The new $3.4 billion bid came from rival Australian miner

New Hope

, which has joined the bidding war for Macarthur with U.S. coal miner

Peabody Energy

(BTU) - Get Report

and Noble Group, a Hong Kong-based commodities company.

Earlier this week, Macarthur rejected an

increased takeover offer

from Peabody Energy valued at about $3.3 billion, saying the Peabody offer remains below the price analysts think the company is worth.

Macarthur has been pursuing its own bid for smaller Australian rival

Gloucester Coal

. A key part of Peabody's offer required that Macarthur drop its plan for Gloucester Coal.

Macarthur's board was expected to meet Monday to vote on the Noble deal. Under that deal, Noble would sell certain Australian mining assets, particularly an 88% stake in Gloucester Coal, in return for a 25% stake in Macarthur.

Macarthur's board has recommended the Noble deal.

But reports from

Reuters

Friday say Macarthur will delay the voting for a week after Macarthur said it was aware that mining giant

Xstrata

had approached one of its major shareholders.

-- Reported by Joseph Woelfel in New York.

Follow TheStreet.com on

Twitter

and become a fan on

Facebook.