Macarthur Coal (MCC) is the world’s largest producer of low volatile pulverized injection coal used for steel making and is a supplier to steel producers.
MCC has been a hot stock in Australian news after it received a revised takeover offer from Peabody Energy, which values Macarthur Coal at $3.56 billion, or $14 per share.
The original offer of $13 per share was rejected by MCC in favour of its planned takeover of Gloucester Coal (GCL).
MCC had scheduled a shareholder vote on the GCL deal for April 12, however Peabody requested a delay in order for Macarthur Coal shareholders to consider their own offer.
The market had hoped Peabody would come back with a higher bid than $14 per share, so it is likely that MCC will reject the revised offer.
MCC Australian share price jumped 1.6% after coming out a trading halt yesterday. It has traded with more momentum since the beginning of February 2010.