PEAMco will not withdraw not only does it destroy the credibility of ArcellorMittal & Peabody in any future M&A activities but it immediately invites CITIC to make a counterbid (effectively denying PEAMco of owning the largest seaborne PCI coal company in the world for good).
The Chinese have deep pockets (they may even team up with POSCO) and they look at the long term into the decades NOT what's happening right now in Europe. They are carefully watching on the sideline.
Once the dark clouds lift in Europe and the US (eventually it must happen a few years down the track), MCC would be a $25+ stock.
MCC Price at posting:
$15.85 Sentiment: None Disclosure: Held
