Macarthur Coal director steps down, fueling ArcelorMittal takeover speculation
A key stakeholder in Australia's Macarthur Coal Ltd. stepped down from the board, fueling speculation the company is close to striking a takeover deal is close with ArcelorMittal.
By Agencies |
MELBOURNE: A key stakeholder in Australia's Macarthur Coal Ltd. stepped down from the board on Monday, fueling speculation the company is close to striking a takeover deal is close with ArcelorMittal.
Trading in the shares of Macarthur Coal, supplier of more than a third of the world's pulverized coal, were halted at the company's request pending a statement about talks with ArcelorMittal, the world's largest steelmaker.
Macarthur Coal director and founder Ken Talbot announced Monday he had stepped down from the board to avoid any possible conflicts of interest relating to his 19.76 pc stake in Macarthur Coal.
ArcelorMittal last month approached Macarthur Coal about a potential deal after buying 14.9 pc in the coal miner, building its stake from a 4.3 pc parcel of shares sold by Talbot and another investor, Tinkler Investments.
"The fact that Talbot has stepped down and Macarthur have asked for a trading halt would seem to indicate to me that a deal is about to be announced," said Fat Prophets analyst Gavin Wendt said. "It would seem that Talbot is likely to sell his stake into the bid.''
Macarthur Coal shares last traded at 20.73 Australian dollars, valuing the group at A$4.4 bn (US$4.2 bn). Talbot said in a statement recent corporate activity in the coal industry allowed him to sell part of the Macarthur Coal stake "at a level which I believe has given all shareholders in the company the opportunity to review their own investment, at a price close to current value."
Trading in the shares of Macarthur Coal, supplier of more than a third of the world's pulverized coal, were halted at the company's request pending a statement about talks with ArcelorMittal, the world's largest steelmaker.
Macarthur Coal director and founder Ken Talbot announced Monday he had stepped down from the board to avoid any possible conflicts of interest relating to his 19.76 pc stake in Macarthur Coal.
ArcelorMittal last month approached Macarthur Coal about a potential deal after buying 14.9 pc in the coal miner, building its stake from a 4.3 pc parcel of shares sold by Talbot and another investor, Tinkler Investments.
"The fact that Talbot has stepped down and Macarthur have asked for a trading halt would seem to indicate to me that a deal is about to be announced," said Fat Prophets analyst Gavin Wendt said. "It would seem that Talbot is likely to sell his stake into the bid.''
Macarthur Coal shares last traded at 20.73 Australian dollars, valuing the group at A$4.4 bn (US$4.2 bn). Talbot said in a statement recent corporate activity in the coal industry allowed him to sell part of the Macarthur Coal stake "at a level which I believe has given all shareholders in the company the opportunity to review their own investment, at a price close to current value."
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