IF China's Citic has another bidder in the wings for Macarthur Coal it had better get its skates on. Peabody and ArcelorMittal, which last month won the Macarthur board's recommendation with a sweetened $4.9 billion bid for the miner, have raised their holding in the company from 16.07 per cent to 17.34 per cent.
Acceptances into their $16-a-share offer have been negligible so far, with less than 1 per cent of shareholders buying in, but they are likely to rise once China's Ministry of Commerce hands down its decision on the takeover.
The Chinese approval process could take as long as five months, but word is Peabody and Arcelor may secure a favourable decision before the end of the month.
Some say a counter-bidder would need to emerge before the bidders secure Chinese approvals, which would give the partners an edge over potential rivals.
The Macquarie-advised Citic is hoping for a price close to the $18 mark for its 24.6 per cent of the company.
MCC Price at posting:
$15.97 Sentiment: Buy Disclosure: Held
