Shares of takeover target Macarthur Coal have dipped, with no sign of a sweetened bid from two spurned suitors or an offer from coal giant Xstrata.
Macarthur is at the centre of a takeover battle between US miner Peabody Energy and local rival New Hope Corp, both of whose offers hinge on Macarthur dropping plans to take over smaller rival Gloucester Coal.
Macarthur's shares fell as much as 5 per cent and last traded down 1.5 per cent at $16.27, reflecting uncertainty over the bidding war. That was still 13-16 per cent above the rejected offers from New Hope and Peabody.
Speculation that Xstrata, who has approached at least one of Macarthur's major shareholders, was going to bid, had sent Macarthur's shares up to a 20-month high of $17.17 on Monday.
The main attraction in the battle is Macarthur's PCI coal, coveted by steel makers as it is cheaper than other coking coal and burns more cleanly.
But Macarthur repeated today that its plan to take over smaller rival Gloucester was still the best deal on the table, defying Australian miner New Hope's claim that its all-share offer, worth $3.7 billion, was better.
New Hope in talks
However, New Hope said today it had begun talks with its target's shareholders.
"We are in the process of talking to all Macarthur shareholders and the discussions are continuing today," New Hope's chairman Robert Millner told Reuters, adding that the talks began on Monday afternoon.
When asked if New Hope would consider sweetening its current all-scrip offer for Macarthur, Mr Millner said: "our offer is now the best that is available on the table, so we are happy to sit at the moment."
Macarthur's second- and third-largest shareholders, global steel giants ArcelorMittal and Posco, have made clear they are waiting to see what emerges before committing to back the Gloucester deal at a vote set for April 19.
"ArcelorMittal has not yet made a decision about how to vote," Macarthur said, citing the steel maker.
It confirmed Posco had also not made a decision, as reported on Monday.
Gloucester's controlling shareholder, commodities firm Noble Group, had said all three of Macarthur's top shareholders backed the Gloucester deal, under which Noble would receive a near one-quarter stake in Macarthur.
Macarthur's top shareholder, CITIC Resources, declined to comment. New Hope's chairman was not immediately available to comment.
A source close to Noble said the top shareholders support the Gloucester deal "in the absence of a superior offer."
MCC Price at posting:
$15.94 Sentiment: Hold Disclosure: Held
