8216;Bid for Macarthur open: ArcellorMittal

Jointly vying for Macarthur under the banner PEAMCoal,Peabody and ArcelorMittal launched a hostile bid of Australian Dollars 15.50 per share on August 1 after the world8217;s largest miner of pulverised coking coal used as a low-cost input in steel making refused to back their initial friendly offer.

Macarthur8217;s management urged shareholders yesterday not to accept the offer until it is able to review a revised bidder8217;s statement to be issued following their talks with PEAMCoal,the investment vehicle being used by Peabody Energy and ArcelorMittal.

PEAMCoal is 60 percent owned by Peabody and 40 percent by ArcelorMittal.

ArcelorMittal and Peabody Energy said a bidder8217;s statement would be sent to Macarthur shareholders today.

Macarthur8217;s shares were trading today at around the Australian Dollars 15.50 per share offer price.

ArcelorMittal and Peabody Energy said current Macarthur shareholders would be entitled to retain dividends paid for the company8217;s financial year that ended on June 30 up to 16 cents,making their offer worth up to Australia Dollars 15.66 per share.

8220;Macarthur shareholders now have a clear opportunity to accept the PEAMCoal offer at a price that gives full credit to the state of Macarthur8217;s current operations and development projects,8221; Peabody Energy chief executive Gregory Boyce said in a statement.

They said the offer represents a 41 percent gain over the Australian Dollars 11.08 price of Macarthur8217;s shares on July 11,the day Peabody and ArcelorMittal8217;s approach was disclosed to the market.