Macarthur receives revised $3.8 billion bid from Peabody Energy

US coal miner Peabody Energy, the world's largest private-sector coal company has raised the stakes in the complex battle for control of Australia's Macarthur coal by sweetening its bid to $3.8 billion.

Last week, Brisbane-based Macarthur, Australia's second-biggest coal miner and supplier of low volatile pulverised injection coal to steel mills in Asia, Europe and Brazil, had rejected Peabody's $3.27 billion unsolicited takeover offer saying it undervalued the company. (See: Macarthur Coal rejects Peabody Energy's sweetened $3.27 billion takeover offer)

Peabody today raised its offer by 14 per cent to A$16 per share, or $3.8 billion, to better Macarthur's local rival, Queensland-based New Hope's sweetened $3.44 billion cash and share offer of $14.50 per share subject to a cap of $822.9, which the board rejected yesterday in favour of pursuing its Gloucestor deal.

The board of Macarthur had rejected New Hope's revised offer saying that its revised proposal does not represent an adequate premium for control of the company and it would proceed with its planned takeover of Gloucester Coal. (See: Gloucester deal sweeter than New Hope's revised offer: Macarthur)

The board of Macarthur said today that it is considering the new revised proposal from Peabody and has asked its shareholders to do nothing for now.