American coal company Peabody Energy (NYSE:BTU), has increased its offer for Macarthur Coal by 14 percent, raising it to A$16 a share, up from the most recent A$14 a share bid, and the original A$13 a share bid made by Peabody. That would bring the total offer to A$4.1-billion ($3.8 billion)if it goes forward and is approved.
Peabody is competing with an Australian company, New Hope, for control of Macarthur, and has a leg up on the company at this stage because the board of Macarthur likes their offer far better than the New Hope offer of A$14,5 a share.
Macarthur's board has recommended shareholders reject the New Hope offer as it now stands, possibly paving the way for acceptance of the Peabody offer.
Marcarthur is the leading global exporter of pulverized coal, which is in high demand from China.
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