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Rumours fly but companies remain tight-lipped

RUMOURS that Xstrata is the mystery suitor chasing a takeover bid in Macarthur Coal heated up las...

Christine Feary
Rumours fly but companies remain tight-lipped

Two weeks ago former Macarthur Coal chairman Ken Talbot announced plans to sell his 24% stake in the company. At the time, Talbot was reported to be in discussions with four parties, one of which was thought to be Xstrata.

The Australian reported last Friday that a "person familiar with the situation" had confirmed Xstrata was in takeover talks with Macarthur Coal.

Macarthur Coal today released a statement confirming that talks with a third party are continuing, but refused to identify that party.

“No formal proposal has yet been made to the Macarthur Coal board, and there can be no certainty that any proposal will be made to the board or to shareholders," the company said.

A spokesperson for Xstrata said the company would not comment on speculation.

Shares in Macarthur rose 5.3% last Friday after reports surfaced claiming Xstrata was the mystery bidder, finishing at $17.75.

The share price dropped back 2.08% this morning, trading at $17.38 mid-morning.

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