MacArthur shares defy resource tax fears
Macarthur Coal’s shares have been buoyed up after Peabody Energy reaffirmed its desire to go ahead with a proposed takeover bid. Shares had initially fallen down to A$ 12.81, after Peabody Energy said it was working through the impact of the new resource tax. However, Peabody has now reaffirmed its commitment to the takeover bid.
Peabody Energy submitted an improved and definitive proposal on 15 April to acquire a controlling interest in Macarthur Coal Limited. Under Peabody's proposal, Macarthur shareholders would receive a cash price of A$16.00 per share valuing Macarthur at A$4.1 billion (US$3.8 billion).
Under the proposal, Peabody was prepared to offer cash to all Macarthur shareholders and 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.
“The tax proposal gives us one more consideration, but I wouldn’t say it’s affecting the timeframe [of the takeover],” said Viv Svec, Peabody Energy spokesperson. However it is debatable if the bid will remain unchanged as shares are now worth 12% less than they were when Peabody made the original bid.
Read the article online at: https://www.worldcoal.com/coal/07052010/macarthur_shares_defy_resource_tax_fears-/
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