defensive takeover strategies, page-11

Although some among us choose not to think about any relevance of Peabody's bid for MacArthur Coal(MCC) they may now possibly reconsider these points:-

a) it is in fact a joint bid by Peabody Coal and ArcelorMittal.... the latter currently holds over 16% of MCC.

b) it is conditional on receiving regulatory approval and gaining at least 50.01% acceptance.

c) the offer premium is 40% up on the last MCC share price and 1MthVWAP.

d) in the current political and economic uncertainty there may not be many alternative bidders who can meet the pre-conditions, obtain approvals and are prepared to stump up enough big bickies.

As I said yesterday the offer timing was exquisite.

A similar bid approach to ESG is therefore not entirely beyond the realms of possibility in the near future.