Stability of supply is reason for stake
South Korean steelmakers POSCO, has reiterated its desire to hold on to its stake in Australian miner, Macarthur Coal, in the face of a bidding war.
"Ninety-nine percent of our investment purpose in Macarthur is to secure a stable supplier," Kwon Young-tae, POSCO's senior vice president, told Reuters after a conference with analysts.
POSCO will continue to review the proposed merger between Macarthur and Gloucester saying it had made no decision yet on whether to support the deal.
POSCO is one of Macarthur’s three largest shareholders. The Australian miner has rejected bids from America’s Peabody Energy and Australia’s New Hope. Global miner Xstrata has also been rumoured to be preparing a bid.
An archive on the Macarthur takeover battle is available here.
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