SYDNEY, Australia (
) -- Australia's
rejected an increased takeover offer from U.S. coal miner
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.
"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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