Thursday, July 14, 2011


PEABODY ENERGY AND ARCELORMITTAL TO PROCEED WITH MACARTHUR COAL DUE DILIGENCE

St. Louis, Luxembourg, July 14 – Peabody Energy (NYSE: BTU) and ArcelorMittal (NYSE: MT) today note the announcement by Macarthur Coal Ltd. (ASX: MCC) which states that the parties have agreed to a process for due diligence.

Following discussions between the parties, Peabody and ArcelorMittal have agreed to:

· Improve the indicative proposal by allowing a dividend of 16 cents per share to be paid to Macarthur shareholders without reducing the price per share; and
· Reduce the number of conditions attached to the proposal. 

In return, Macarthur has agreed to provide due diligence and site visits to Peabody and ArcelorMittal, commencing July 18, 2011.
Peabody and ArcelorMittal look forward to completing such confirmatory due diligence in a timely manner.
The indicative proposal, subject to due diligence, is at a cash price of not less than A$15.50 per share which represents a 43% premium to A$10.83 per share, the one month volume weighted average price prior to July 11, the date on which the proposal was made public.

Should the proposal proceed and be successful, Macarthur will form an integral part of Peabody Australia and expand ArcelorMittal's mining interests in the key resource market of Australia. On this basis, both Peabody and ArcelorMittal acknowledge and value the contribution that Macarthur employees will make to the ongoing operations and growth plans.

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