Another day in the battle for Macarthur Coal, the world’s biggest exporter of pulverized coal.
It told the market yesterday that after speaking to three major shareholders, none of them had made a decision regarding their holdings.
It said its second-biggest shareholder, ArcelorMittal, hasn’t decided how it will vote next week on a proposal for a change of control.
Macarthur said Arcelor (the world’s biggest steelmaker), is “supportive of Macarthur management in terms of management of competing bids”, Macarthur said in yesterday’s statement.
Macarthur has recommended shareholders approve a deal at a meeting on April 19 that would see Hong Kong-based Noble Group become its largest holder.
Peabody Energy Corp of the US and Australian company, New Hope are also battling to control the Australian company.
South Korea’s Posco, Macarthur’s third-largest shareholder, has not indicated to Noble how it will vote, Macarthur also said in the statement.
Shareholders will be asked to approve Macarthur’s purchase of Australian coal miner Gloucester Coal Ltd., which is 87.7% owned by Noble, for $8 a share.
Naturally, Gloucester and Noble support the deal.
Macarthur shares fell 58c to $15.94 yesterday.
New Hope shares fell 19c to $5.30, down 3.5%
New Hope’s A$3.77 billion all-stock offer values Macarthur at $14.31 at yesterday’s close, so the market gives it no hope in its current form.
"The Macarthur Board notes New Hope Corporation Limited’s ("New Hope") lengthy media statement dated 12 April 2010," the company said.
"Macarthur believes there is no new information in this statement and refers you to its release made on 9 April 2010 in relation to New Hope’s current proposal ("New Hope Proposal").
"The Macarthur Board reiterates its view that it does not believe the New Hope Proposal is capable of being a superior proposal to the Gloucester and Middlemount transactions.
"Macarthur is therefore not permitted under its Bid Implementation Agreement with Gloucester to engage with New Hope on the basis of this proposal.
"Accordingly, the Macarthur Board continues to recommend that shareholders vote in favour of the resolution at the Macarthur Shareholders’ Meeting scheduled for 19 April 2010 to approve the issue of Macarthur shares to Noble under the Gloucester and Middlemount transactions."
St. Louis-based Peabody has offered $14 a share in cash.
Macarthur has rejected both offers.
Citic Group, an investment company backed by China’s cabinet, is the largest shareholder in Macarthur through Citic Australia Coal Ltd., which has 22.4%. Arcelor holds 16.6%, and South Korea’s Posco owns 8.3%.
ArcelorMittal and Posco paid $20 a share for their stakes in Macarthur in June 2008.
