ArcelorMittal may bid $4 billion for full control of Macarthur Coal

28 May 2008

ArcelorMittal, which bought a 14.9 per cent stake in the Australian coal mine Macarthur Coal for $630 million last week, is expected to make an A$4.2 billion plus (over $4 billion) offer for full stake in the Brisbane, Queensland-based mining house.

Executives from ArcelorMittal, the world's largest steel company, are in Brisbane for a due diligence on Macarthur Coal, ahead of a possible take-over bid.

ArcelorMittal, which paid an average A$19.96 a share for less than 15 per cent holding, is now Macarthur's third-biggest shareholder.

Luxumburg-based ArcelorMittal bought a 4.3 per cent stake from Macarthur's largest shareholder and founder Ken Talbot and the balance from private investor Nathan Tinkler.

ArcelorMittal had applied to Australia's Foreign Investment Review Board to increase its holding in Macarthur beyond 14.9 per cent.

Broking firm Merrill Lynch, in an update of the Macarthur Coal deal, said ArcelorMittal is likely to offer $20 a share for full control of  Macarthur.