Firms Up Offer for Miner Down Under

Friday, August 26, 2011 @ 03:08 PM gHale

Rio Tinto and Mitsubishi Corp. upped their offer to $11.6 billion to acquire all of Australian mining company Coal & Allied.

The improved price, which comes a few weeks after the first proposal, represents a 39 percent premium to Coal & Allied’s closing price before the suitors initially approached the company about an acquisition. Coal & Allied directors have recommended the deal.

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The Coal & Allied deal is the latest in a flurry of activity around Australian miners.

Earlier this week, Glencore, the commodities giant, moved to acquire the remaining shares of Minara Resources, a nickel producer. Peabody Energy and ArcelorMittal made a hostile bid for Macarthur Coal.

Coal & Allied Coal & Allied is one of the major coal producers in the New South Wales region, employing more than 1500 people across three operations — Mount Thorley Warkworth, Hunter Valley Operations and Bengalla.

Current projects include the Mount Pleasant, Lower Hunter Lands, Hunter Valley Operations South and the proposed Warkworth Extension.

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