Macarthur shares closed at $14.87 on Thursday, far higher than the $13 per share offer from Peabody, with Peabody consequently lifting its offer to $14 per share this morning.

The large American coal producer’s first offer was conditional on Macarthur’s takeover of Gloucester Coal not going ahead.

Noble bought an 87.8% stake in Gloucester in a $7 per share cash takeover last year. An independent expert’s report on the Gloucester takeover established a minimum base case of Noble earning a 20.7% stake in Macarthur, while the maximum case had Noble gaining a 24.6% stake.

“What we would really like is for the Americans to go back home,” Noble said.

“We busted our tail to put together a good fair deal that will build a great company.

“All they are doing is trying to throw a wrench in a well thought-out deal with a check book and try and turn people's heads with a short-term payoff.”

Noble said it could make an attempt to raise its share of the Middlemount mine to 50% and could also review its rights under the Monto project, also in Queensland.

“The entire concept behind the Gloucester-Macarthur merger was to build a truly outstanding multi-mine and port Australian-based coal group with unique access to key markets,” the commodities trader said.

“It was also crafted to give all shareholders who had patiently held the various shares involved the right to ride along and enjoy any potential upside.

“Life was great until a few days ago when, instead of jumping on their horses, the Americans charged into town on a Gulfstream jet for the afternoon and plunked a bid down that was a great deal for them and not, in our view, anywhere near what was already on the table.”

In response, Peabody said Noble’s comments took an oddly personal tone.

“What it doesn't do, though, is lay out any convincing evidence that Noble's transaction is adequate,” Peabody said.

“That's because Peabody's bid is clearly superior, but it would upset Noble's deal whereby Noble would acquire a significant board presence and nearly a quarter of Macarthur shares at a bargain-basement discount to the current market value.”

This morning Peabody not only lifted its Macarthur offer to $14 per share but also removed the conditions under its first offer.

“While Peabody continues to offer alternatives to the three major shareholders to retain their original interest in Macarthur, Peabody's offer is not contingent on their commitment provided the Macarthur board supports our proposal,” the company said.

“Peabody today repeated its request to the Macarthur board to delay its April 12, 2010 shareholders' meeting, so that its shareholders may have the opportunity to consider Peabody's proposal and realise a cash premium for their shares.”

Macarthur has already announced this morning the shareholder vote will proceed on April 12.

Under the Gloucester offer, Macarthur intends to issue shares to Noble and to gain Noble’s stake in the Middlemount Coal joint venture, which forms a key part of the Queensland coal producer’s growth strategy.

Peabody is a major Queensland coal producer with five operations in the state – the North Goonyella longwall mine and the Burton, Eaglefield, Millennium and Wilkie Creek open cut mines.

The company recently applied for federal government environmental approval of an expansion to Wilkie Creek in the Surat Basin, to lift raw coal production capacity from 2.3 million tonnes per annum to 10Mtpa.

Peabody has majority interests in more than 30 US mines.

Macarthur shares increased 23% from Tuesday’s close to the close on Thursday.