Macarthur Coal has rejected a takeover approach from New Hope Corporation as inadequate.
After receiving two takeover offers in a week, Macarthur has rejected New Hope’s $3.71 billion approach, an increase of $200 million from Peabody Energy’s bid, as also too low.
This new offer comes on the back of market rumours Xstrata Coal is also eyeing Macarthur.
The New Hope approach would see the miner offer a wholly scrip bid of 2.7 New Hope shares for each Macarthur share.
Macarthur rejected the bid as “the scrip ratio did not represent an adequate premium for control of the company,” Macarthur said in a statement.
“The proposal consists of a scrip offer with no cash alternative and requires the approval of 75 per cent of votes cast at a scheme meeting.”
While, unlike Peabody’s offer, New Hope’s bid was binding, both offers are conditional on Macarthur not proceeding with its meeting relating to a takeover bid for Singaporean based Noble Group’s Gloucester Coal.
However, while Macarthur has stated that the meeting would proceed; it would postpone the meeting if circumstances change, but recommended that the company continue in its Gloucester bid.
“The Macarthur board urges shareholders to not have any regard to public statements issued by New Hope or any other third party,” the miner stated.