low ball bid to be countered ?

I hope it's Xstrata doing some serious due diligence. Glencore is very agressive but first and foremost MCC is tier-1 asset. Largest ship bourne PCI miner in the world by tonnage !

Also Xstrata was previously involved more than a year ago when Peabody had a crack at it (interestingly their 1st bid was at $16). Xstrata would be familiar with the MCC books and the company has since then proven up and acquired more resources.

I reckon a Xstarta did would be no leas than $16.50

At worst, thay would make Peabody pay more than they otherwise would.

Peabody is using this period of market weakness and the carbon tax as a smoke screen to come in with this low ball bid. In 2 years time, the carbon tax will be nothing but a bad dream. abbott also promised to rescind the MRRT !