cites sources close to transaction, newspaper says Noble is supporting Macarthur bid. Both miners requested trading halts today and people familiar with situation tell Dow Jones Newswires trading halts are related.
Noble only took control of Gloucester in June this year, scuppering Gloucester's merger plan with miner Whitehaven Coal (WHC.AU). Noble's A$7/share offer valued Gloucester at A$572 million, Gloucester currently has market cap of about A$537 million. "It's a little bit surprising as Gloucester was a nice fit and a good asset, but on the other hand there is a price for everything," says analyst. Noble shares closed flat at S$3.01 yesterday. How stock reacts to news depends on price fetched for Gloucester; if high premium is paid, shares may react positively but if premium disappoints, move may be seen as strategic u-turn, raise questions over company's execution.
My take:
No reason for Noble to sell Gloucester at a low premium. Expect news to be largely positive.
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