Peabody May Have To Offer $3.7B For Macarthur Coal
April 08, 2010 2:34 AM
Peabody Coal (NYSE: BTU), the largest U.S. coal producer, may have to up its unsolicited bid for Australia-based Macarthur Coal to $3.7 billion, according to analysts. Peabody's offers of $3 billion and $3.27 billion have been rejected by Macarthur, which says both offers undervalue the company.
Peabody has complained to Australia's Takeovers Panel that Macarthur has not shared relevant information with shareholders regarding Peabody's offers.
Peabody's offer still depends on Macarthur not pursuing Gloucester Coal. Peabody is trying to delay an April 12 meeting where Gloucester shareholders will condiser Macarthur's takeover bid.
Peabody says the failure to provide the information prevented Macarthur shareholders from comparing the relative merits of the Peabody bid against the proposed Gloucester deal, according to the Associated Press.
