Peabody cuts Macarthur bid

Peabody has cut its bid for Macarthur on the back of the proposed mining tax.

Peabody Energy has announced it will cut it takeover offer for Macarthur Coal by $250 million.

After a frantic bidding war for the coal miner Macarthur, Peabody finally secured its bid at $16 per share.

While the frenzy saw Macarthur Coal’s share price reach a high of $16.18, the miner Peabody Energy is now revising the offer down to $15 per share, after outlining the resources super tax as a key concern.

News of the revised bids has seen growing uncertainty over whether Peabody will carry out the takeover, with Macarthur chairman Ken De Lacy saying there is no doubt that the new mining tax prompted Peabody to lower its bid.

In further signs of increasing skepticism of the takeover occurring, Macarthur Coal shares fell yesterday in what was generally a rising market.

Macarthur’s share price was 13.38 as of market close yesterday.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.