The article says now that Peabody has Chinese Minsitry of Commerce permission, it's like the bid will be accepted. It says that traders have pushed the share price higher than the bid offer, thinking that Peabody might up the offer to get Citic (24.5% ownersip) and Posco (10%) over the line. Noone is sure how Citici and Posco might vote, but some expect they might knock the offer back in the hop of a higher offer. No guarantee that Peabody will raise the offer. If it gets 50%, te bid becomes unconditional, and it can close the offer. Peabody could then make a new and higher offer down the track to mop up. It then gives an axample of Cliffs making a huge offer after making an early offer for a company.
The article says this may be risky for retail holders, because if Peabody doesn't get 50%, they may walk. Also, Peabody could take MCC private if it gets over 50%, so it's risky for Posco and Citic, as they could have an illiquid investment, but have to pay for capex in the private vehicle.
MCC Price at posting:
$16.03 Sentiment: None Disclosure: Held
