MCC - MacArthur Coal possible takeover looming?

By a staff reporter

A parcel of 22.1 million shares of MacArthur Coal Ltd., just over 10 per cent of the group's issued share capital, has changed hands in a late trade at a record price of $20.00 per share, according to Dow Jones Newswires.

The price represents an 8.8 per cent premium to the group's last traded price, sparking takeover speculation.

The miner announced a profit guidance for the 2008 financial year, with net profit after tax (NPAT) for the year ended 30 June 2008 in the range of $67 million to $75 million, from $66.5 million a year ago.

According to the miner, profitability in the June 2008 quarter was boosted by recent coal price settlements, but price outcomes have been affected by the significant volume of undelivered contract tonnage.

Macarthur Coal’s chief executive and managing director, Nicole Hollows, said; “Operations at Macarthur Coal’s two mines, Coppabella and Moorvale, continue to perform well with the recommencement of coal mining at both sites following the wet weather events earlier in the year."

"Force majeure has not as yet been lifted as access to all mining areas at the Coppabella mine is yet to be re-established.” she said

Takeover talks swirl

Earlier in the month, the miner which supplies 35 per cent of global export demand for pulverised coal, said it was still in talks with an unnamed third party, but had received no formal proposal, with media reports that a Chinese shareholder was lining up a $US830 million deal to raise its stake.

According to the reports, China's state-owned CITIC Group, which owns 19.9 per cent of Macarthur was said to be considering a bid to raise its stake in the coal miner in a deal estimated to be worth $US830 million

There has been increasing speculation that the coal miner was being eyed by Switzerland-based mining giant Xstrata, while BHP Billiton , Rio Tinto and Brazil's Vale had considered bidding for the stake held by CITIC and Macarthur's founder Ken Talbot, who has been selling down his stake of around 24 per cent.

There is also talk that Australian mining tycoon Nathan Tinkler, who holds 10 per cent of the company and has been seeking a buyer of his stake for ``months''.

MacArthur shares closed at A$18.38, down 0.07 per cent.