ArcelorMittal, Peabody bid for Macarthur Coal

AP News
Posted: Jul 11, 2011 6:28 AM
ArcelorMittal, Peabody bid for Macarthur Coal

ArcelorMittal says that together with Peabody Energy Corp. it has made an offer to acquire Macarthur Coal Ltd. in a bid that values the Australian company at 4.7 billion Australian dollars ($5 billion).

ArcelorMittal said Monday that Macarthur shareholders will be offered AU$15.50 per share. The Luxembourg steel maker already owns about 16 percent of Macarthur.

The takeover would be made by a holding company which will be 40 percent owned by ArcelorMittal and 60 percent owned by Peabody.

Macarthur said its board was not making a recommendation on the indicative offer, but would engage with the two companies.

Macarthur produces pulverized coal, which is a key ingredient in the making of steel.