worth a punt ?

SWISS-BASED Glencore International is considering its options after acquiring around five per cent of Austral Coal, although Austral has yet to receive a rival takeover offer from the group.

In a statement released to the Australian Stock Exchange today, Glencore said it had acquired about five per cent of the ordinary shares in takeover target Austral, through a wholly-owned subsidiary.
Glencore said it was "considering its position" in relation to Centennial Coal's current takeover bid for Austral.

Austral last month endorsed Centennial Coal's offer, indicating the merger would proceed over the next few months in the absence of a higher offer.

Advertisement:
Centennial Coal has offered to buy Austral for about $350 million, offering 10 Centennial shares for every 37 Austral shares.

Glencore said it was assessing a number of options in regard to Centennial's takeover offer, including the possibility of a takeover bid being made for Austral by a party other than Centennial.

While Centennial's bid for Austral is unconditional, Glencore said it involved a consideration comprising shares in Centennial, with no cash alternative consideration. "Further, in order for Austral shareholders accepting the Centennial bid to obtain capital gains tax rollover relief, Centennial would have to obtain at least 80 per cent of the Austral ordinary shares," Glencore said.

The Swiss company said its shares in Austral were acquired over the last few weeks, with the last parcel of shares acquired yesterday.

It also advised it had entered into a number of cash-settled equity swap agreements with "well regarded" investment banks.

"In aggregate, these swaps related to approximately 7.4 per cent of the ordinary shares in Austral," Glencore said.

Austral earlier this morning said it had not received a takeover offer from Glencore or a substantial shareholder statement.

"Austral has not received an offer from any member of the Glencore Group," the company said in a statement.

"Austral will advise shareholders if a counter offer is received from any party."

Shares in Austral rose three cents to $1.37 at 1105 AEST while shares in Centennial Coal dropped 10 cents to $4.37.