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Peabody Energy Submits Improved Proposal Of A$16.00 Per Share To Acquire Controlling Interest In Macarthur Coal - Quick Facts

Peabody Energy (BTU) said it submitted an improved and definitive proposal to acquire a controlling interest in Macarthur Coal Limited (MACDF.PK,MCC.AX). Under Peabody's proposal, which has the approval of Peabody's Board of Directors, Macarthur shareholders would receive a cash price of A$16.00 per share valuing Macarthur at A$4.1 billion, or US$3.8 billion.

Peabody's proposal is clearly superior to Macarthur's proposed takeover offer for Gloucester Coal (GCL.AX) and associated transactions with Noble (NOBGF.PK) and other proposals that Macarthur has disclosed.

Under the proposal, Peabody is prepared to offer cash to all Macarthur shareholders and remains willing to provide any, or all, of Macarthur's three major shareholders with the opportunity to retain their economic interest in Macarthur should they so desire.

Peabody's proposal is subject only to a limited, confirmatory due diligence period of up to five days, primarily focused on the terms of material contracts, including potential change in control provisions. With cooperation from Macarthur's management team, Peabody's proposal can be offered to Macarthur's shareholders for consideration in a very short time period.

Peabody's proposal will lapse if Macarthur proceeds with the shareholder vote scheduled for April 19, 2010, or if the Gloucester/Noble Group transactions proceed.

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