Macarthur Rejects Peabody's Increased Bid

Australia's Macarthur Coal rejected an increased takeover offer from U.S. coal miner Peabody Energy.
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SYDNEY, Australia (

TheStreet

) -- Australia's

Macarthur Coal

rejected an increased takeover offer from U.S. coal miner

Peabody Energy

(BTU) - Get Report

.

MacArthur's board unanimously voted against Peabody's offer of 14 Australian dollars ($12.91) a share, or a total of about $3.3 billion, which was an increase from Peabody's earlier bid of A$13 a share.

>> Who Owns Peabody?: Ken Heebner

"Peabody's revised proposal remains highly conditional and does not fully value Macarthur and its significant growth prospects," Macarthur Chairman Keith De Lacy said in a statement. He added Peabody's offer remains below the price analysts think the company is worth.

Macarthur said it continues with 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.

-- Reported by Joseph Woelfel in New York.

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