Macarthur Coal doubles annual profit to $253 mln

SYDNEY (AP) - Macarthur Coal Ltd. has nearly doubled its full year profit and repeated its advice to shareholders to reject a takeover offer from U.S energy giant Peabody Energy Corp. and Luxembourg-based steelmaker ArcelorMittal.

The company's 241 million Australian dollars ($253 million) profit for the fiscal year through June announced Wednesday was up 93 percent from AU$125 million in the previous year despite reduced production due to record rainfall.

Macarthur's board of directors argues that the AU$4.7 billion bid from Peabody and ArcelorMittal undervalues one of the world's largest producers of pulverized coal coveted by steelmakers.

Macarthur has reminded shareholders that the offer remains open until mid-September and is not final. Macarthur also said it is talking with other potential buyers about possible bids.

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