October 07, 2011 12:00AM
By Tony Grant-Taylor, Herald Sun
GLOBAL steel giant ArcelorMittal again has extended the deadline for Macarthur Coal shareholders to accept the $4.8 billion takeover offer tabled by the European group.
ArcelorMittal, the world's biggest steelmaker, and US coal miner Peabody are offering $16 a share for a stake of at least 50.01 per cent in Macarthur.
The companies last month said they had secured shares equivalent to 21 per cent of the Queensland-based group.
The bidding vehicle, PEAMCoal, yesterday extended to 8pm on October 28 the deadline for shareholders to accept the offer.
PEAMCoal originally had set a deadline of September 27, before pushing that to October 14. The takeover offer is backed by Macarthur's board.
The extension came as shares in another coal miner, New Hope, edged up only 1c yesterday, or 0.2 per cent, to $6.11 after rallying on Wednesday after its call for expressions of interest from potential bidders.
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Analysts say New Hope may be hard pressed to drum up offers at $7.60 or more - the starting price nominated by stockbroker RBS Morgans as the level necessary to win over New Hope's majority shareholder, Washington H Soul Pattinson.
Most bidders for coal assets over the past year have seen their share prices slump - including US groups Alpha Natural Resources and Peabody.
Alpha in January agreed to buy fellow US group Massey Energy, only to see its shares slump more than 60 per cent as investors worried about a fall in demand due to European and US economic woes.
Broker Bell Potter director Angus Aitken says New Hope could be worth $5.8 billion - about $7 a share.
But Rick de los Reyes, a manager at T Rowe Price Group's Global Metals and Mining Fund, said: "This deal is more attractive than the other coal deals that we've seen this year".
"The fact Australia is close to China, China went from net exporter to a net importer of thermal coal and New Hope has (its own) port capacity, that's huge."
New Hope said this week it would invite selected groups to submit formal offers.
By Tony Grant-Taylor, Herald Sun
GLOBAL steel giant ArcelorMittal again has extended the deadline for Macarthur Coal shareholders to accept the $4.8 billion takeover offer tabled by the European group.
ArcelorMittal, the world's biggest steelmaker, and US coal miner Peabody are offering $16 a share for a stake of at least 50.01 per cent in Macarthur.
The companies last month said they had secured shares equivalent to 21 per cent of the Queensland-based group.
The bidding vehicle, PEAMCoal, yesterday extended to 8pm on October 28 the deadline for shareholders to accept the offer.
PEAMCoal originally had set a deadline of September 27, before pushing that to October 14. The takeover offer is backed by Macarthur's board.
The extension came as shares in another coal miner, New Hope, edged up only 1c yesterday, or 0.2 per cent, to $6.11 after rallying on Wednesday after its call for expressions of interest from potential bidders.
Start of sidebar. Skip to end of sidebar.
End of sidebar. Return to start of sidebar.
Analysts say New Hope may be hard pressed to drum up offers at $7.60 or more - the starting price nominated by stockbroker RBS Morgans as the level necessary to win over New Hope's majority shareholder, Washington H Soul Pattinson.
Most bidders for coal assets over the past year have seen their share prices slump - including US groups Alpha Natural Resources and Peabody.
Alpha in January agreed to buy fellow US group Massey Energy, only to see its shares slump more than 60 per cent as investors worried about a fall in demand due to European and US economic woes.
Broker Bell Potter director Angus Aitken says New Hope could be worth $5.8 billion - about $7 a share.
But Rick de los Reyes, a manager at T Rowe Price Group's Global Metals and Mining Fund, said: "This deal is more attractive than the other coal deals that we've seen this year".
"The fact Australia is close to China, China went from net exporter to a net importer of thermal coal and New Hope has (its own) port capacity, that's huge."
New Hope said this week it would invite selected groups to submit formal offers.
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