Coal producer Peabody Energy Corporation (
) early Tuesday saw its $3.5 billion bid to take over Australian
mining company MacArthur Coal rejected, prompting the company to
turn its attention elsewhere in search of growth prospects.
"The Macarthur Board has … formed the view that based on the
price and the conditions of the proposal, that it cannot reasonably
be recommended to shareholders," said MacArthur in a statement.
Countering, Peabody said that it "looks forward to advancing its
internal growth projects and continuing to pursue other value-added
investments to serve high demand markets." The company
the Australian mining giant since March.
Peabody shares were mostly flat in premarket trading
The Bottom Line
We had removed shares of BTU from our recommended list on Apr.19,
when the stock was trading at $46.02. The company has a .71%
dividend yield, based on last night's closing stock price of
$39.61. The stock has technical support in the $35-$37 price area.
If the shares can firm up, we see overhead resistance around the
$44-$45 price levels. We would remain on the sidelines for now.
Peabody Energy Corporation (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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, as well as a detailed explanation of
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