US miner bids for Australia's Macarthur Coal

Australian miner Macarthur Coal said Monday it had received a takeover bid from US mining giant Peabody Energy and major steel producer ArcelorMittal valued at Aus$4.68 billion (US $5 billion). Macarthur, the world's top producer of a pulverised coal used to make steel, has rejected several previous takeover bids from Peabody in the past two years. The latest offer is for Aus$15.50 per share, less the final dividend for this year, under which the foreign-based firms would take control of Macarthur through a jointly-owned bid company. "The board makes no recommendation in relation to the indicative proposal but will seek to engage with Peabody and ArcelorMittal in relation to the price and terms," Macarthur said in a statement. The proposal is subject to a number of conditions, including foreign investment review board requirements and the bid company achieving an interest in at least 50.01 percent of Macarthur shares. The offer from Peabody, which previously offered Aus$15 and Aus$16 for Macarthur, and ArcelorMittal, the world's largest steel producer, comes a day after the Australian government announced the details of its carbon tax. The tax, which would remain fixed for the first three years before moving to an emissions trading scheme in mid-2015, has angered the coal industry, which says it will cost jobs. The government estimates that the carbon price of Aus$23 a tonne will add about Aus$1.40 to the cost of a tonne of Australian coal but will not stop growth in the sector. Dow Jones Newswires contributed to this story