Peabody Energy Sweetens Offer for Macarthur Coal (BTU)

By Staff,

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Coal producer Peabody Energy Corporation ( BTU ) on Thursday announced it has raised its takeover bid for Australian coal producer Macarthur Coal.

The new all-cash offer is for of 16 Australian dollars per share, or $14.95 in American dollars. That bid is 14% higher than Peabody's previous offer, and beats out rival New Hope Corp.'s cash/stock offer of $14.50 Australian per share.

Macarthur rejected New Hope's bid on Thursday, noting that "it did not represent an adequate premium for control of the company."

In addition, Macarthur said it would continue its attempt at a takeover of its own. The company's shareholders will vote Monday on a bid to buy out Gloucester Coal Ltd.

Peabody Energy shares fell 23 cents, or -0.5%, in premarket trading Thursday.

The Bottom Line
We have been recommending shares of BTU since Mar.25, when the stock was trading at $47.23. The company has a .59% dividend yield, based on last night's closing stock price of $47.86.

Peabody Energy Corporation ( BTU ) is a "recommended" dividend stock, holding a DARS™ Rating of 3.5 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: BTU

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