Peabody Ups Offer for Macarthur to $3.8B

The U.S. coal miner raised its offer to acquire Australia's Macarthur Coal by 14% to $3.8 billion.
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ST. LOUIS (

TheStreet

) --

Peabody Energy

(BTU) - Get Report

raised its offer to acquire Australia's

Macarthur Coal

by 14% to 16 Australian dollars a share, or A$4.1 billion ($3.8 billion).

Peabody's offer tops an offer of A$14.50 for Macarthur from

New Hope

.

Peabody said its offer is for all cash and it remains "willing to provide any, or all, of Macarthur's three major shareholders with the opportunity to retain their economic interest in Macarthur should they so desire. "

Citic Group of China is Macarthur's largest shareholder with a stake of 22.4%, according to

Bloomberg

.

ArcelorMittal

(MT) - Get Report

holds 16.6% and

Posco

(PKX) - Get Report

has a stake of 8.3%.

Peabody, the U.S. coal miner, said Thursday the proposal will lapse if Macarthur proceeds with the shareholder vote scheduled Monday regarding a takeover of its smaller rival

Gloucester Coal

.

-- Reported by Joseph Woelfel in New York.

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