Peabody will fund its portion of the investment with a short-term loan for as much as $2 billion from Bank of America Corp., UBS AG, and Morgan Stanley, and a revolving credit for at least $1 billion, according to a joint statement on its website.
Luxembourg-based ArcelorMittal will fund the deal through a $6 billion credit line signed in March this year, according to the statement.
ArcelorMittal and Peabody, the biggest U.S. coal producer, raised their bid to A$16 a share from A$15.50, Brisbane-based Macarthur said today in a statement. The board recommends the offer, which is 44 percent more than the stock’s close before the initial proposal on July 11.
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