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Tuesday, April 06, 2010

Interesting media release by Noble Group in response to Peabody's bid for Macarthur

Noble Group (N21.SI) has issued an SGX statement creatively entitled It’s all very simple, making fun of Peabody’s tortuous case for buying Macarthur.

I found the media release interesting and is worth publishing here.


We at Noble read with interest Peabody's long and convoluted defense of their "indicative offer" for Macarthur.


Their explanation of the merits of their deal went on for paragraph after paragraph and sure was hard to follow.

It reminds us a bit of Shakespeare in Hamlet, Act 3, Scene 2,

"Peabody doth protest too much, methinks."

They went on and on and on, but in fact, it is quite simple:

1. Take their cash if you don't believe in the future of coal. Keep in mind, if they weren't buying it cheap, even at 14 bucks a share, they wouldn't be doing it. We believe that coal is in a once in a multi-decade bull run. So do Peabody, which is why they are trying to get you to give them a great coal operation for their rapidly depreciating dollars.

2. If you believe in coal for the long-term, and want to stay in a company that intends to develop into the largest independent coal producer in Australia, vote for the Gloucester-Macarthur merger on Monday, April 12.

It really is that simple.

Media Release by Noble Group [via]

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