Coal producer Peabody Energy Corporation ( BTU
"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 had pursued the Australian mining giant since March.
Peabody shares were mostly flat in premarket trading Tuesday.
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 ( BTU ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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