Macarthur's

Macarthur's high valuation is based partly on it having two mines already in production in Queensland state and its Middlemount mine is due to start up in fiscal year 2012.

Macarthur Rejects Higher Bid From Peabody, Arcelor David Winning 2011

Based on a National Australia Bank estimate of hard coking coal prices at US$295 a metric ton in the second quarter of this year, that could push LV PCI prices up to US$236-250 a ton over the same period, compared with US$150 a ton in the three months to the end of December and US$90 a ton for most of Macarthur's 2010 fiscal year.

Macarthur Coal Net More Than Triples David Fickling 2011

This means that Peabody and Arcelor don't necessarily need the support of China's Citic Resources Holdings Ltd. and South Korea's Posco Ltd., which own 24.6% and just over 7% of Macarthur's shares, respectively.

Macarthur Endorses Sweetened Takeover Ross Kelly 2011

Analysts say that complicating things for Peabody and ArcelorMittal are the major shareholdings of China's Citic Resources Holdings Ltd. and South Korea's Posco Ltd. Citic has 24.6% of the company, while Posco owns just over 7%, according to Macarthur's website.

Macarthur Rejects Higher Bid From Peabody, Arcelor David Winning 2011

Andrew Gardner , commodities analyst at MF Global, said possible rival bidders that have already examined Macarthur's books may have been waiting for Peabody and Arcelor to make the first move before determining how much they should offer.

Macarthur Endorses Sweetened Takeover Ross Kelly 2011

Macarthur's board might also be at pains to demonstrate rigor on pricing to deter any litigious shareholders.

Wargames at Peabody and Macarthur Liam Denning 2011

Peabody also knows that Macarthur's stock fell sharply after an earlier bid last year petered out, providing some incentive to deal.

Wargames at Peabody and Macarthur Liam Denning 2011

Hostilities having commenced, Macarthur's stock price now hovers just above Peabody's offer.

Wargames at Peabody and Macarthur Liam Denning 2011

What is more, currency moves and Peabody's agreement to fund a dividend of as much as 16 Australian cents a share for Macarthur's shareholders mean the already punchy bid has climbed 4% in U.S. dollar terms since it was first announced.

Wargames at Peabody and Macarthur Liam Denning 2011

The Peabody-Macarthur bid "appears to be an opportunistic attempt to acquire Macarthur at a time of global economic volatility and regulatory uncertainty in Australia, and fails to reflect Macarthur's industry leading position and the growth potential of its unique assets," said Macarthur Chairman Keith DeLacy .

Macarthur Rejects Higher Bid From Peabody, Arcelor David Winning 2011