Merger hits stormy weather

摘要

Centennial Coal Company Ltd has had somewhat of a bumpy ride of late, with its decision to close the Munmorah Colliery in New South Wales and appearance before the Takeovers Panel while successfully fending off allegations by Glencore International. Centennial had earlier sets its sights on rival miner Austral Coal Ltd and was forced to extend its offer. Glencore controls 7.4 percent of Austral directly and another 6.5 percent through derivatives contracts, enough to prevent Centennial from reaching 90 percent ownership that would allow it to compulsorily acquire the rest of the company. Glencore alleged Centennial's announcement that the mid-tier mining house would close Munmorah Colliery had affected the value of the shares offered for Austral in its all-scrip bid. Glencore asked the Takeovers Panel to order Centennial to stop processing applications, to issue a supplementary bidder's statement containing full information concerning Munmorah and to give former Austral shareholders who had already accepted the offer the chance to withdraw.