Green light for Peabody takeover

MACARTHUR Coal's board has accepted the takeover offer for Peabody Energy and ArcelorMittal and will appoint new board members tomorrow.

Peabody Energy and ArcelorMittal's joint venture bid vehicle PEAMCoal has taken a majority stake in the Queensland coal miner, after launching a $4.9 billion takeover bid.

The directors of Macarthur Coal advised on Tuesday they had accepted PEAMCoal's offer, in respect of all the shares they own.

"The directors strongly recommend that all other shareholders accept the PEAMCoal Offer without delay," the company said in a statement.

PEAMCoal has offered $16 per Macarthur share, which will increase to $16.25 if they achieve a 90 per cent stake in Macarthur by November 11.