50 Indian billionaires in Forbes rich list 2011 | Arcelor Mittal-MT

50 Indian billionaires in Forbes rich list 2011 | Arcelor Mittal-MT

Fifty Indians, including L.N. Mittal, the Ambani brothers and Azim Premji, have made it to the Forbes list of World Billionaires 2011, as Indians Chinese, Russians and Brazilians raced to catch up with Americans, still at the top.

Indian steel czar Lakshmi Mittal with a net worth of USD 31.1 billion grabbed the sixth place with net profits of ArcelorMittal, world’s largest steel-maker, rising 18-fold to USD 2.9 billion in 2010 on recovery in demand for the commodity and higher margins.

Mukesh Ambani with a net worth USD 27 billion was ranked ninth on the world list, while the head of consumer products to outsourcing giant Wipro, Azim Premji, was next ranked 36th with a net worth of USD 16.8 billion.

“The largest such endowment by an individual in India makes Premji one of Asia’s biggest donors,” said the magazine, referring to a donation of USD 2 billion worth of shares last year to a trust to fund his Azim Premji Foundation.

Among the top 10 Indians on the list were Shashi and Ravi Ruia, with a net worth of USD 15.8 billion, Savitri Jindal and family (USD 13.2 billion), Gautam Adani (USD 10 billion), Kumar Mangalam Birla (USD 9.2 billion), Anil Ambani (USD 8.8 billion), Sunil Mittal and family (USD 8.3 billion), and Adi Godrej and family (USD 7.3 billion).

For the second year in a row, Mexican telecom tycoon Carlos Slim Helu takes the title of world’s richest man with a record-breaking fortune of USD 74 billion. His net worth grew USD 20.5 billion in a year.

Microsoft chairman Bill Gates, 55, was second again as his net worth rose USD 3 billion to USD 56 billion. Warren Buffett, 80, chief executive officer of Berkshire Hathaway Inc., held on to third place with USD 50 billion.

Mark Zuckerberg, the 26-year-old cofounder and chief executive officer of social-networking website Facebook Inc. jumped to 52nd this year from 212th place last year.

There are now 1,210 billionaires in the world and 214 new members joined the club in 2010, while only 47 dropped off the list last year. The US still dominates, with 413 billionaires, compared to Asia, which came in second with 332.

The US gained 23 new billionaires and lost 13, recording a net gain of 10. Asia cranked out 98 new billionaires last year, and their combined fortunes jumped 37 percent.

The BRIC (Brazil, Russia, India, China) countries alone accounted for 108 new billionaires, giving them a total of 301. China had the most new billionaires, with 54 and a total of 115. Moscow displaced New York as the city with the greatest number of billionaires with 79, compared with 58.

The Asia-Pacific region had more billionaires than Europe for the first time in more than 10 years and gained the most billionaires of any region, with 105 newcomers.

Here is a complete list of Indian billionaires in order of India Rank, World Rank, Name, Net Worth, Age, Source:

1.. 6 Lakshmi Mittal USD 31.1 B 60 Steel

2.. 9 Mukesh Ambani USD 27 B 53 petrochemicals, oil & gas

3.. 36 Azim Premji USD 16.8 B 65 Software

4.. 42 Shashi & Ravi Ruia USD 15.8 B 67 Diversified

5.. 56 Savitri Jindal & family USD 13.2 B 60 Steel

6.. 81 Gautam Adani USD 10 B 48 commodities, infrastructure

7.. 97 Kumar Birla USD 9.2 B 43 commodities

8.. 103 Anil Ambani USD 8.8 B 51 Diversified

9.. 110 Sunil Mittal & family USD 8.3 B 53 telecom

10. 130 Adi Godrej & family USD 7.3 B 68 Diversified

11. 130 Kushal Pal Singh USD 7.3 B 79 real estate

12. 154 Anil Agarwal USD 6.4 B 57 mining, metals

13. 159 Dilip Shanghvi USD 6.1 B 55 pharmaceuticals

14. 182 Shiv Nadar USD 5.6 B 65 Information technology

15. 265 Malvinder & Shivinder Singh USD 4.1 B 38 healthcare

16. 310 Kalanithi Maran USD 3.5 B 45 media

17. 347 Uday Kotak USD 3.2 B 51 banking

18. 376 Micky Jagtiani USD 3 B 59 Retail

19. 393 Subhash Chandra & family USD 2.9 B 60 media

20. 440 Pankaj Patel USD 2.6 B 57 pharmaceuticals

21. 440 Indu Jain USD 2.6 B 74 media

22. 440 G. M. Rao USD 2.6 B 60 infrastructure

23. 512 Cyrus Poonawalla USD 2.3 B 69 biotech

24. 540 Rajan Raheja & family USD 2.2 B 56 Diversified

25. 564 Desh Bandhu Gupta USD 2.1 B 73 pharmaceuticals

26. 595 N.R. Narayana Murthy & family USD 2 B 64 Software

27. 595 Gautam Thapar USD 2 B 50 engineering, paper

28. 595 Sudhir & Samir Mehta USD 2 B 56 Diversified

29. 595 Aloke Lohia USD 2 B 52 chemicals

30. 651 Venugopal Dhoot USD 1.9 B 59 electronics

31. 651 Chandru Raheja USD 1.9 B 70 real estate

32. 692 Nandan Nilekani & family USD 1.8 B 55 Software

33. 736 Ajay Kalsi USD 1.7 B N/A oil

34. 782 Rahul Bajaj USD 1.6 B 72 motorcycles

35. 782 Senapathy Gopalakrishnan & family USD 1.6 B 55 Software

36. 833 Brijmohan Lall Munjal USD 1.5 B 87 motorcycles

37. 833 K. Anji Reddy USD 1.5 B 69 pharmaceuticals

38. 879 Vijay Mallya USD 1.4 B 55 liquor

39. 879 Ajay Piramal USD 1.4 B 55 pharmaceuticals

40. 879 Vikas Oberoi USD 1.4 B 40 real estate

41. 938 Baba Kalyani USD 1.3 B 62 Engineering

42. 938 Rama Prasad Goenka USD 1.3 B 81 Diversified

43. 993 Keshub Mahindra USD 1.2 B 87 Diversified

44. 993 K Dinesh & family USD 1.2 B 56 Software

45. 993 Rakesh Jhunjhunwala USD 1.2 B 50 Investments

46. 993 Brij Bhushan Singal USD 1.2 B 74 Steel

47. 1057 Yusuf Hamied & family USD 1.1 B 74 Pharmceuticals

48. 1057 S.D. Shibulal & family USD 1.1 B 56 Software
Read More

50 Indian billionaires in Forbes rich list 2011 | Arcelor Mittal-MT

50 Indian billionaires in Forbes rich list 2011 | Arcelor Mittal-MT

Fifty Indians, including L.N. Mittal, the Ambani brothers and Azim Premji, have made it to the Forbes list of World Billionaires 2011, as Indians Chinese, Russians and Brazilians raced to catch up with Americans, still at the top.

Indian steel czar Lakshmi Mittal with a net worth of USD 31.1 billion grabbed the sixth place with net profits of ArcelorMittal, world’s largest steel-maker, rising 18-fold to USD 2.9 billion in 2010 on recovery in demand for the commodity and higher margins.

Mukesh Ambani with a net worth USD 27 billion was ranked ninth on the world list, while the head of consumer products to outsourcing giant Wipro, Azim Premji, was next ranked 36th with a net worth of USD 16.8 billion.

“The largest such endowment by an individual in India makes Premji one of Asia’s biggest donors,” said the magazine, referring to a donation of USD 2 billion worth of shares last year to a trust to fund his Azim Premji Foundation.

Among the top 10 Indians on the list were Shashi and Ravi Ruia, with a net worth of USD 15.8 billion, Savitri Jindal and family (USD 13.2 billion), Gautam Adani (USD 10 billion), Kumar Mangalam Birla (USD 9.2 billion), Anil Ambani (USD 8.8 billion), Sunil Mittal and family (USD 8.3 billion), and Adi Godrej and family (USD 7.3 billion).

For the second year in a row, Mexican telecom tycoon Carlos Slim Helu takes the title of world’s richest man with a record-breaking fortune of USD 74 billion. His net worth grew USD 20.5 billion in a year.

Microsoft chairman Bill Gates, 55, was second again as his net worth rose USD 3 billion to USD 56 billion. Warren Buffett, 80, chief executive officer of Berkshire Hathaway Inc., held on to third place with USD 50 billion.

Mark Zuckerberg, the 26-year-old cofounder and chief executive officer of social-networking website Facebook Inc. jumped to 52nd this year from 212th place last year.

There are now 1,210 billionaires in the world and 214 new members joined the club in 2010, while only 47 dropped off the list last year. The US still dominates, with 413 billionaires, compared to Asia, which came in second with 332.

The US gained 23 new billionaires and lost 13, recording a net gain of 10. Asia cranked out 98 new billionaires last year, and their combined fortunes jumped 37 percent.

The BRIC (Brazil, Russia, India, China) countries alone accounted for 108 new billionaires, giving them a total of 301. China had the most new billionaires, with 54 and a total of 115. Moscow displaced New York as the city with the greatest number of billionaires with 79, compared with 58.

The Asia-Pacific region had more billionaires than Europe for the first time in more than 10 years and gained the most billionaires of any region, with 105 newcomers.

Here is a complete list of Indian billionaires in order of India Rank, World Rank, Name, Net Worth, Age, Source:

1.. 6 Lakshmi Mittal USD 31.1 B 60 Steel

2.. 9 Mukesh Ambani USD 27 B 53 petrochemicals, oil & gas

3.. 36 Azim Premji USD 16.8 B 65 Software

4.. 42 Shashi & Ravi Ruia USD 15.8 B 67 Diversified

5.. 56 Savitri Jindal & family USD 13.2 B 60 Steel

6.. 81 Gautam Adani USD 10 B 48 commodities, infrastructure

7.. 97 Kumar Birla USD 9.2 B 43 commodities

8.. 103 Anil Ambani USD 8.8 B 51 Diversified

9.. 110 Sunil Mittal & family USD 8.3 B 53 telecom

10. 130 Adi Godrej & family USD 7.3 B 68 Diversified

11. 130 Kushal Pal Singh USD 7.3 B 79 real estate

12. 154 Anil Agarwal USD 6.4 B 57 mining, metals

13. 159 Dilip Shanghvi USD 6.1 B 55 pharmaceuticals

14. 182 Shiv Nadar USD 5.6 B 65 Information technology

15. 265 Malvinder & Shivinder Singh USD 4.1 B 38 healthcare

16. 310 Kalanithi Maran USD 3.5 B 45 media

17. 347 Uday Kotak USD 3.2 B 51 banking

18. 376 Micky Jagtiani USD 3 B 59 Retail

19. 393 Subhash Chandra & family USD 2.9 B 60 media

20. 440 Pankaj Patel USD 2.6 B 57 pharmaceuticals

21. 440 Indu Jain USD 2.6 B 74 media

22. 440 G. M. Rao USD 2.6 B 60 infrastructure

23. 512 Cyrus Poonawalla USD 2.3 B 69 biotech

24. 540 Rajan Raheja & family USD 2.2 B 56 Diversified

25. 564 Desh Bandhu Gupta USD 2.1 B 73 pharmaceuticals

26. 595 N.R. Narayana Murthy & family USD 2 B 64 Software

27. 595 Gautam Thapar USD 2 B 50 engineering, paper

28. 595 Sudhir & Samir Mehta USD 2 B 56 Diversified

29. 595 Aloke Lohia USD 2 B 52 chemicals

30. 651 Venugopal Dhoot USD 1.9 B 59 electronics

31. 651 Chandru Raheja USD 1.9 B 70 real estate

32. 692 Nandan Nilekani & family USD 1.8 B 55 Software

33. 736 Ajay Kalsi USD 1.7 B N/A oil

34. 782 Rahul Bajaj USD 1.6 B 72 motorcycles

35. 782 Senapathy Gopalakrishnan & family USD 1.6 B 55 Software

36. 833 Brijmohan Lall Munjal USD 1.5 B 87 motorcycles

37. 833 K. Anji Reddy USD 1.5 B 69 pharmaceuticals

38. 879 Vijay Mallya USD 1.4 B 55 liquor

39. 879 Ajay Piramal USD 1.4 B 55 pharmaceuticals

40. 879 Vikas Oberoi USD 1.4 B 40 real estate

41. 938 Baba Kalyani USD 1.3 B 62 Engineering

42. 938 Rama Prasad Goenka USD 1.3 B 81 Diversified

43. 993 Keshub Mahindra USD 1.2 B 87 Diversified

44. 993 K Dinesh & family USD 1.2 B 56 Software

45. 993 Rakesh Jhunjhunwala USD 1.2 B 50 Investments

46. 993 Brij Bhushan Singal USD 1.2 B 74 Steel

47. 1057 Yusuf Hamied & family USD 1.1 B 74 Pharmceuticals

48. 1057 S.D. Shibulal & family USD 1.1 B 56 Software
Read More

Walter Energy ripe for takeover bids | Arcelor Mittal-MT Arcelor Mittal | Warren Edward Buffett | Audley Capital Advisors LLP | CEO Keith Calder | Record coal prices

Walter Energy ripe for takeover bids | Arcelor Mittal-MT Arcelor Mittal | Warren Edward Buffett | Audley Capital Advisors LLP | CEO Keith Calder | Record coal prices

Walter Energy Inc.’s shareholders, who lost almost $2 billion in three months on management turmoil and disappointing earnings, may still be rewarded with a $4 billion windfall if the coal producer is acquired.

Investor Audley Capital Advisors LLP says the southern Appalachia producer of steelmaking coal should explore a sale following CEO Keith Calder’s resignation after three months on the job. Walter Energy, which this month closed its headquarters in Tampa, would fetch as much as $192 a share, or a 60% premium to its close July 21, based on the median earnings multiple paid in coal deals since 1998.

While the $12 billion price would mark the biggest takeover of a coal producer, Walter Energy makes twice as much profit per dollar of sales as the U.S. industry average, data compiled by Bloomberg show. With metallurgical coal trading near a record and the Birmingham, Ala.-based company’s shares down 15% from an all-time high in April, Walter Energy may lure buyers from Alpha Natural Resources Inc. to Consol Energy Inc., according to Raymond James Financial Inc. It may also attract steelmaker Cia. Siderurgica Nacional SA, Davenport & Co.

“It’s really an obvious takeout candidate, especially after their CEO resigned,” says Eric Green, a Philadelphia-based fund manager at Penn Capital Management, which oversees $6.5 billion and about 60,000 Walter Energy shares. “It would be extremely attractive for an international steel or materials company. There’s huge demand for met coal, and Walter’s is very high quality.”

‘Constructive dialogue’

Michael Monahan, a spokesman for Walter Energy, declined to comment beyond the company’s July 19 response to Audley Capital. The coal producer says it welcomes “constructive dialogue” with all investors, is focused on creating long-term shareholder value and will still be led by “an experienced senior management team,” according to the statement.

Armel Leslie, a spokesman for London-based Audley Capital, declined to comment.

Walter Energy, which has operations in Alabama’s Blue Creek seam, gained mines in Canada when it purchased Vancouver-based Western Coal Corp. in April for $5.6 billion.

Metallurgical coal, also referred to as coking coal, is used to forge steel, while the thermal form is used by utilities to generate electricity. Walter Energy’s coking coal is considered better quality because it’s purer and has a higher heat rate, making it desirable for steelmakers, says Timothy Parker, who oversees $8.5 billion in natural-resource stocks at T. Rowe Price Group Inc., part of the firm’s $509.9 billion under management globally.

“It’s excellent coal,” says Baltimore-based Parker, whose firm owned about 2.3 million shares of Walter Energy at the end of March. “It’s really essential for steelmaking, so it prices at a premium, especially because it’s very hard to find. It’s the bee’s knees.”

Walter Energy was also one of more than 40 companies that Bloomberg identified in March that met the acquisition criteria Warren Buffett listed in his annual letter to shareholders. Buffett typically prefers “simple” businesses with pretax profit exceeding $75 million, “consistent” earning power, and “good” returns on equity while employing little or no debt, according to his report to Berkshire Hathaway Inc. shareholders.

While Walter Energy has been a takeover candidate for “several years,” the company became more vulnerable to a sale after its CEO says he was stepping down just three months after he took the position, according to Penn Capital’s Green.

Management conflict

Calder, whose resignation is effective at the end of this month, told the board of directors in a letter that he was leaving due to differing opinions on management philosophy, according to a June 30 statement from the company. Joseph B. Leonard, the interim chief from March 2010 to March 2011, will be the interim CEO again.

The company missed analysts’ earnings estimates three quarters in a row and has faced operational problems at deeper mines in Alabama. Since reaching a record April 8, the shares fell 21% before Audley Capital’s letter was made public, wiping out about $1.9 billion in market value, data compiled by Bloomberg show. The stock had gained 7.8% since the investor’s letter was disclosed through yesterday.

Walter Energy closed at $127.33 per share July 27.

The company should sell because it “now lacks the strong leadership needed,” which is “weighing on the share price,” Audley Capital, which owns 900,000 shares, or about 1.5% of the company, said in a July 17 letter to the board.

Walter Energy could fetch $240 a share in a takeover, based on the 2012 earnings multiple that Peabody Energy Corp. and ArcelorMittal are offering for Macarthur Coal Ltd., the letter says. That would be nearly double Walter Energy’s closing price July 27.

“Walter has been the headless horseman before, and it’s about to be the headless horseman again,” T. Rowe’s Parker says. “It’s not totally shocking that some activists wanted to shake the tree.”

Coal producers have sold for a median of 7.25 times earnings before interest, taxes, depreciation and amortization since 1998, according to data compiled by Bloomberg. Applying that multiple to analysts’ estimated 2011 EBITDA of $1.66 billion, Walter Energy may draw a bid for its equity of $11.9 billion, or almost $192 a share, Bloomberg data show.

That’s $4.4 billion more than the company’s market value of $7.5 billion as of yesterday. Such a deal would also top Teck Resources Ltd.’s almost $8.7 billion acquisition of Fording Canadian Coal Trust in 2008 as the biggest in the industry.

Record coal prices

While J. Christopher Haberlin, an analyst at Davenport, estimates the company may fetch between $185 and $215 a share, David Beard, an analyst at Iberia Capital Partners LLC, pegs a takeover at about $160 a share.

The coal producer’s profit margin of 25% in the last 12 months tops 10 of 11 U.S. industry peers with market values greater than $500 million, according to data compiled by Bloomberg. The group’s average margin was almost 13%.

Benchmark prices for steelmaking coal settled at $315 a ton for the quarterly contract, according to UBS AG, the second-highest level on record. They slipped 4.5% from the all-time high of $330 for the three-month contract that started April 1.

Prices have surged amid global production disruptions, including record flooding in Queensland, Australia, and labor strikes in the face of robust demand from China and India.

“Now is a good time to sell the company because of the near-record prices for met coal, strong global demand and constricted global supply,” says Davenport’s Haberlin, who’s based in Richmond, Va. “The assets have more value now than ever.”

Walter has projected that coking coal production will increase to 20 million metric tons in 2012 from sales of 7.2 million tons in 2010, prior to the Western Coal deal closing.

The company’s production growth, high-quality coal and rising international demand may attract buyers in the coal industry, including Consol Energy, a coal and natural-gas company, and Alpha, the world’s third-largest producer of steelmaking coal, says Jim Rollyson, an analyst at Raymond James in Houston.

Consol Energy has a market value of $12.3 billion, while Alpha of Abingdon, Va., is valued at $10.2 billion. Lynn Seay, a spokeswoman for Consol Energy, and Ted Pile, a spokesman for Alpha, says the companies don’t comment on speculation.

Rare quality

The quality of Walter Energy’s coal makes it attractive to producers of steel, which is used in buildings and cars, says T. Rowe’s Parker. Brazilian iron and steel manufacturer CSN, as Siderurgica Nacional is known, is also a potential buyer, according to Haberlin at Davenport. The company has a market value of $16 billion.

Fabio Rocha, a spokesman for CSN, didn’t respond to an email for comment.

While Walter Energy may appeal to a variety of companies, many firms in the mining industry are already in the midst of acquisitions or recently completed deals.

Alpha completed the $7.5 billion acquisition last month of Massey Energy Co., the owner of the mine in West Virginia where 29 workers died in an April 2010 explosion. That may make Alpha less likely to pursue another deal right now, says Iberia Capital’s Beard, who’s based in New Orleans.

Steel manufacturer ArcelorMittal of Luxembourg and St. Louis-based coal miner Peabody announced on July 11 a proposed acquisition of Macarthur that values the Brisbane, Australia-based coal producer at $5.1 billion.

Although the bidders are still trying to persuade Macarthur, ArcelorMittal, with a $50 billion market capitalization, or Peabody, at $16.5 billion, may potentially bid for Walter Energy, says Davenport’s Haberlin, Raymond James’s Rollyson and Penn Capital’s Green.

Giles Read, a spokesman for ArcelorMittal, declined to comment. Representatives for Peabody didn’t respond to phone calls and emails requesting comment.

“Clearly the market has worked in their favor in terms of the strength in pricing of their commodity,” Rollyson says. “Given the right circumstance, there will probably be some interest in Walter.” Read More

Walter Energy ripe for takeover bids | Arcelor Mittal-MT Arcelor Mittal | Warren Edward Buffett | Audley Capital Advisors LLP | CEO Keith Calder | Record coal prices

Walter Energy ripe for takeover bids | Arcelor Mittal-MT Arcelor Mittal | Warren Edward Buffett | Audley Capital Advisors LLP | CEO Keith Calder | Record coal prices

Walter Energy Inc.’s shareholders, who lost almost $2 billion in three months on management turmoil and disappointing earnings, may still be rewarded with a $4 billion windfall if the coal producer is acquired.

Investor Audley Capital Advisors LLP says the southern Appalachia producer of steelmaking coal should explore a sale following CEO Keith Calder’s resignation after three months on the job. Walter Energy, which this month closed its headquarters in Tampa, would fetch as much as $192 a share, or a 60% premium to its close July 21, based on the median earnings multiple paid in coal deals since 1998.

While the $12 billion price would mark the biggest takeover of a coal producer, Walter Energy makes twice as much profit per dollar of sales as the U.S. industry average, data compiled by Bloomberg show. With metallurgical coal trading near a record and the Birmingham, Ala.-based company’s shares down 15% from an all-time high in April, Walter Energy may lure buyers from Alpha Natural Resources Inc. to Consol Energy Inc., according to Raymond James Financial Inc. It may also attract steelmaker Cia. Siderurgica Nacional SA, Davenport & Co.

“It’s really an obvious takeout candidate, especially after their CEO resigned,” says Eric Green, a Philadelphia-based fund manager at Penn Capital Management, which oversees $6.5 billion and about 60,000 Walter Energy shares. “It would be extremely attractive for an international steel or materials company. There’s huge demand for met coal, and Walter’s is very high quality.”

‘Constructive dialogue’

Michael Monahan, a spokesman for Walter Energy, declined to comment beyond the company’s July 19 response to Audley Capital. The coal producer says it welcomes “constructive dialogue” with all investors, is focused on creating long-term shareholder value and will still be led by “an experienced senior management team,” according to the statement.

Armel Leslie, a spokesman for London-based Audley Capital, declined to comment.

Walter Energy, which has operations in Alabama’s Blue Creek seam, gained mines in Canada when it purchased Vancouver-based Western Coal Corp. in April for $5.6 billion.

Metallurgical coal, also referred to as coking coal, is used to forge steel, while the thermal form is used by utilities to generate electricity. Walter Energy’s coking coal is considered better quality because it’s purer and has a higher heat rate, making it desirable for steelmakers, says Timothy Parker, who oversees $8.5 billion in natural-resource stocks at T. Rowe Price Group Inc., part of the firm’s $509.9 billion under management globally.

“It’s excellent coal,” says Baltimore-based Parker, whose firm owned about 2.3 million shares of Walter Energy at the end of March. “It’s really essential for steelmaking, so it prices at a premium, especially because it’s very hard to find. It’s the bee’s knees.”

Walter Energy was also one of more than 40 companies that Bloomberg identified in March that met the acquisition criteria Warren Buffett listed in his annual letter to shareholders. Buffett typically prefers “simple” businesses with pretax profit exceeding $75 million, “consistent” earning power, and “good” returns on equity while employing little or no debt, according to his report to Berkshire Hathaway Inc. shareholders.

While Walter Energy has been a takeover candidate for “several years,” the company became more vulnerable to a sale after its CEO says he was stepping down just three months after he took the position, according to Penn Capital’s Green.

Management conflict

Calder, whose resignation is effective at the end of this month, told the board of directors in a letter that he was leaving due to differing opinions on management philosophy, according to a June 30 statement from the company. Joseph B. Leonard, the interim chief from March 2010 to March 2011, will be the interim CEO again.

The company missed analysts’ earnings estimates three quarters in a row and has faced operational problems at deeper mines in Alabama. Since reaching a record April 8, the shares fell 21% before Audley Capital’s letter was made public, wiping out about $1.9 billion in market value, data compiled by Bloomberg show. The stock had gained 7.8% since the investor’s letter was disclosed through yesterday.

Walter Energy closed at $127.33 per share July 27.

The company should sell because it “now lacks the strong leadership needed,” which is “weighing on the share price,” Audley Capital, which owns 900,000 shares, or about 1.5% of the company, said in a July 17 letter to the board.

Walter Energy could fetch $240 a share in a takeover, based on the 2012 earnings multiple that Peabody Energy Corp. and ArcelorMittal are offering for Macarthur Coal Ltd., the letter says. That would be nearly double Walter Energy’s closing price July 27.

“Walter has been the headless horseman before, and it’s about to be the headless horseman again,” T. Rowe’s Parker says. “It’s not totally shocking that some activists wanted to shake the tree.”

Coal producers have sold for a median of 7.25 times earnings before interest, taxes, depreciation and amortization since 1998, according to data compiled by Bloomberg. Applying that multiple to analysts’ estimated 2011 EBITDA of $1.66 billion, Walter Energy may draw a bid for its equity of $11.9 billion, or almost $192 a share, Bloomberg data show.

That’s $4.4 billion more than the company’s market value of $7.5 billion as of yesterday. Such a deal would also top Teck Resources Ltd.’s almost $8.7 billion acquisition of Fording Canadian Coal Trust in 2008 as the biggest in the industry.

Record coal prices

While J. Christopher Haberlin, an analyst at Davenport, estimates the company may fetch between $185 and $215 a share, David Beard, an analyst at Iberia Capital Partners LLC, pegs a takeover at about $160 a share.

The coal producer’s profit margin of 25% in the last 12 months tops 10 of 11 U.S. industry peers with market values greater than $500 million, according to data compiled by Bloomberg. The group’s average margin was almost 13%.

Benchmark prices for steelmaking coal settled at $315 a ton for the quarterly contract, according to UBS AG, the second-highest level on record. They slipped 4.5% from the all-time high of $330 for the three-month contract that started April 1.

Prices have surged amid global production disruptions, including record flooding in Queensland, Australia, and labor strikes in the face of robust demand from China and India.

“Now is a good time to sell the company because of the near-record prices for met coal, strong global demand and constricted global supply,” says Davenport’s Haberlin, who’s based in Richmond, Va. “The assets have more value now than ever.”

Walter has projected that coking coal production will increase to 20 million metric tons in 2012 from sales of 7.2 million tons in 2010, prior to the Western Coal deal closing.

The company’s production growth, high-quality coal and rising international demand may attract buyers in the coal industry, including Consol Energy, a coal and natural-gas company, and Alpha, the world’s third-largest producer of steelmaking coal, says Jim Rollyson, an analyst at Raymond James in Houston.

Consol Energy has a market value of $12.3 billion, while Alpha of Abingdon, Va., is valued at $10.2 billion. Lynn Seay, a spokeswoman for Consol Energy, and Ted Pile, a spokesman for Alpha, says the companies don’t comment on speculation.

Rare quality

The quality of Walter Energy’s coal makes it attractive to producers of steel, which is used in buildings and cars, says T. Rowe’s Parker. Brazilian iron and steel manufacturer CSN, as Siderurgica Nacional is known, is also a potential buyer, according to Haberlin at Davenport. The company has a market value of $16 billion.

Fabio Rocha, a spokesman for CSN, didn’t respond to an email for comment.

While Walter Energy may appeal to a variety of companies, many firms in the mining industry are already in the midst of acquisitions or recently completed deals.

Alpha completed the $7.5 billion acquisition last month of Massey Energy Co., the owner of the mine in West Virginia where 29 workers died in an April 2010 explosion. That may make Alpha less likely to pursue another deal right now, says Iberia Capital’s Beard, who’s based in New Orleans.

Steel manufacturer ArcelorMittal of Luxembourg and St. Louis-based coal miner Peabody announced on July 11 a proposed acquisition of Macarthur that values the Brisbane, Australia-based coal producer at $5.1 billion.

Although the bidders are still trying to persuade Macarthur, ArcelorMittal, with a $50 billion market capitalization, or Peabody, at $16.5 billion, may potentially bid for Walter Energy, says Davenport’s Haberlin, Raymond James’s Rollyson and Penn Capital’s Green.

Giles Read, a spokesman for ArcelorMittal, declined to comment. Representatives for Peabody didn’t respond to phone calls and emails requesting comment.

“Clearly the market has worked in their favor in terms of the strength in pricing of their commodity,” Rollyson says. “Given the right circumstance, there will probably be some interest in Walter.” Read More

Phoenix Energy Biomass Power Plants | Phoenix Energy sells biomass power plants that convert biological waste into heat and electricity

Phoenix Energy Biomass Power Plants | Phoenix Energy sells biomass power plants that convert biological waste into heat and electricity

Phoenix Energy. More power to you.

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Every kilowatt of power you generate using one of our systems reduces the amount of CO2 and other harmful emissions released into the atmosphere created by the burning of coal or other fossil-based fuels. Your company instantly becomes part of the global warming solution instead of part of the problem.

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A huge percentage of the world's fossil fuels come from the world's most volatile places. By reducing your use of oil derivatives, you reduce dependence on foreign energy sources, increasing the country's energy security. Read More

Phoenix Energy Biomass Power Plants | Phoenix Energy sells biomass power plants that convert biological waste into heat and electricity

Phoenix Energy Biomass Power Plants | Phoenix Energy sells biomass power plants that convert biological waste into heat and electricity

Phoenix Energy. More power to you.

An on-site biomass-fueled power plant efficiently converts wood and agricultural waste into energy that can be used for electricity and heat, making your business stronger, your bottom line healthier, and our environment cleaner. Discover the benefits of taking the power into your own hands.

Protect your bottom line.

Our energy solutions can significantly reduce your operating costs in a number of ways, by reducing both your fuel and disposal costs and helping you qualify for tax credits and other energy incentives. Because you're not generating any greenhouse gasses, you may also be able to sell your emissions credits under any future cap and trade system. And if you generate excess power, you can sell that power directly back to your local utility.

Protect your business.

By owning and maintaining your own on-site power plant that operates parallel to the existing power grid, you safeguard yourself against all power interruptions. When the grid is overwhelmed for any reason, you'll still have all the power you need.

Protect our environment.

Every kilowatt of power you generate using one of our systems reduces the amount of CO2 and other harmful emissions released into the atmosphere created by the burning of coal or other fossil-based fuels. Your company instantly becomes part of the global warming solution instead of part of the problem.

Protect your country.

A huge percentage of the world's fossil fuels come from the world's most volatile places. By reducing your use of oil derivatives, you reduce dependence on foreign energy sources, increasing the country's energy security. Read More

ARCELORMITTAL AND PEABODY ENERGY SUBMIT INDICATIVE PROPOSAL TO ACQUIRE MACARTHUR COAL | macarthur coal, peabody energy, arcelor mittal, arcelormittal

ARCELORMITTAL AND PEABODY ENERGY SUBMIT INDICATIVE PROPOSAL TO ACQUIRE MACARTHUR COAL | macarthur coal, peabody energy, arcelor mittal, arcelormittal

ArcelorMittal ("ArcelorMittal") notes today's announcement by Macarthur Coal Limited ("Macarthur") and confirms that ArcelorMittal and Peabody Energy Corporation ("Peabody") have made an indicative, nonbinding and conditional proposal to make an off-market takeover bid, through a bid company 40% owned by ArcelorMittal and 60% owned by Peabody, to acquire up to 100% of the issued securities of Macarthur ("Indicative Proposal").

Under the Indicative Proposal, Macarthur shareholders would be offered a cash price of A$15.50 per share, implying a value for the equity in Macarthur of approximately A$4.7 billion. ArcelorMittal already has a relevant interest of approximately 16 percent of Macarthur's shares. The Indicative Proposal is conditional on the successful completion of due diligence, which would be completed in a timely manner. Any resulting offer to Macarthur shareholders would be conditional only on a minimum of 50.01 percent acceptance by Macarthur shareholders, approval from Australia's Foreign Investment Review Board and other customary conditions and approvals.

ArcelorMittal and Peabody look forward to engaging with the Board of Macarthur in relation to the Indicative Proposal. ArcelorMittal is being advised by RBC Capital Markets and Mallesons Stephen Jaques. The announcement does not constitute and is not intended to constitute a proposal to make a takeover bid for Macarthur and there is no assurance that any such takeover bid will be made. Read More

ARCELORMITTAL AND PEABODY ENERGY SUBMIT INDICATIVE PROPOSAL TO ACQUIRE MACARTHUR COAL | macarthur coal, peabody energy, arcelor mittal, arcelormittal

ARCELORMITTAL AND PEABODY ENERGY SUBMIT INDICATIVE PROPOSAL TO ACQUIRE MACARTHUR COAL | macarthur coal, peabody energy, arcelor mittal, arcelormittal

ArcelorMittal ("ArcelorMittal") notes today's announcement by Macarthur Coal Limited ("Macarthur") and confirms that ArcelorMittal and Peabody Energy Corporation ("Peabody") have made an indicative, nonbinding and conditional proposal to make an off-market takeover bid, through a bid company 40% owned by ArcelorMittal and 60% owned by Peabody, to acquire up to 100% of the issued securities of Macarthur ("Indicative Proposal").

Under the Indicative Proposal, Macarthur shareholders would be offered a cash price of A$15.50 per share, implying a value for the equity in Macarthur of approximately A$4.7 billion. ArcelorMittal already has a relevant interest of approximately 16 percent of Macarthur's shares. The Indicative Proposal is conditional on the successful completion of due diligence, which would be completed in a timely manner. Any resulting offer to Macarthur shareholders would be conditional only on a minimum of 50.01 percent acceptance by Macarthur shareholders, approval from Australia's Foreign Investment Review Board and other customary conditions and approvals.

ArcelorMittal and Peabody look forward to engaging with the Board of Macarthur in relation to the Indicative Proposal. ArcelorMittal is being advised by RBC Capital Markets and Mallesons Stephen Jaques. The announcement does not constitute and is not intended to constitute a proposal to make a takeover bid for Macarthur and there is no assurance that any such takeover bid will be made. Read More

Macarthur Coal; US Peabody Energy and ArcelorMittal SA Submit Proposal to Acquire Macarthur Coal

Macarthur Coal; US Peabody Energy and ArcelorMittal SA Submit Proposal to Acquire Macarthur Coal

Peabody Energy (NYSE: BTU) and ArcelorMittal SA (NYSE: MT) today confirmed that they have jointly submitted an indicative proposal to the board of directors of Macarthur Coal Ltd. (ASX: MCC) to acquire all of the shares of the company.

Under the proposal by a newly formed company, owned 60 percent by Peabody and 40 percent by ArcelorMittal, Macarthur shareholders would be offered a cash price of A$15.50 per share through an off-market takeover offer. The new company has a relevant interest of approximately 16 percent in Macarthur’s shares.

The proposal price implies a value for the equity in Macarthur of approximately A$4.7 billion and represents a substantial premium to recent trading.

The proposal to Macarthur’s board is non-binding and conditional on the successful completion of due diligence, which would be completed in a timely manner. Any resulting offer to Macarthur shareholders would be subject only to minimum 50.01 percent acceptance, Australia’s Foreign Investment Review Board approval and other customary conditions and approvals.

According to Peabody Chairman and Chief Executive Officer Greg Boyce, “We believe there is significant value that can be created by managing Macarthur’s portfolio of coal assets using Peabody’s industry-leading operating, development and commercial skills. We look forward to advancing this proposal to complete a transaction for the benefit of Macarthur shareholders.”

Aditya Mittal, Chief Financial Officer and Member of the Group Management Board of ArcelorMittal, said: “ArcelorMittal has been a long-term investor in Macarthur, and we look forward to discussing our proposal with the board of Macarthur.”

Macarthur is the world’s largest producer of seaborne low volatile pulverized coal injection (LV PCI) coal with production and development assets in the Bowen Basin, Australia, including the Coppabella and Moorvale Joint Venture and Middlemount Mine. It controls total coal reserves of approximately 270 million tonnes (approximately 175 million tonnes on an attributable basis) and total resources of approximately 2.3 billion tonnes (approximately 1.7 billion tonnes on an attributable basis). It has current production guidance of 3.8 to 4.0 million tonnes for the year ended June 30, 2011.

Peabody is the world’s largest private-sector coal company and a global leader in clean coal solutions. With 2010 sales of 246 million tons and nearly US$7 billion in revenues, Peabody fuels 10 percent of U.S. power and 2 percent of worldwide electricity.

ArcelorMittal is the world’s leading integrated steel and mining company, with operations in more than 60 countries. In 2010, ArcelorMittal had revenues of US$78 billion and crude steel production of 90.6 million tonnes, representing approximately 8 percent of world steel output. ArcelorMittal’s mining operations produced 47 million tonnes of iron ore and 7 million tonnes of metallurgical coal as well in 2010.

Peabody has engaged UBS and Bank of America Merrill Lynch as its financial advisers and Freehills as its legal adviser in relation to the potential transaction. ArcelorMittal has engaged RBC Capital Markets as its financial adviser and Mallesons Stephen Jaques as its legal adviser in relation to the potential transaction.

Certain statements in this press release are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on numerous assumptions that Peabody believes are reasonable, but they are open to a wide range of uncertainties and business risks that may cause actual results to differ materially from expectations. These factors are difficult to accurately predict and may be beyond the company’s control. The company does not undertake to update its forward-looking statements. Factors that could affect results include those described in this press release as well as risks detailed in the company’s reports filed with the Securities and Exchange Commission.

Nothing in this announcement constitutes or is intended to constitute a proposal to make a takeover bid for Macarthur Coal Limited. There is no assurance that any such takeover bid will be made.

Macarthur reserves and resources and other information are based on public disclosures and exclude the MDL162 tenement.

CONTACT: Vic Svec +1-314-342-7768
Source: Peabody Energy

Macarthur Coal; US Peabody Energy and ArcelorMittal SA Submit Proposal to Acquire Macarthur Coal

Macarthur Coal; US Peabody Energy and ArcelorMittal SA Submit Proposal to Acquire Macarthur Coal

Peabody Energy (NYSE: BTU) and ArcelorMittal SA (NYSE: MT) today confirmed that they have jointly submitted an indicative proposal to the board of directors of Macarthur Coal Ltd. (ASX: MCC) to acquire all of the shares of the company.

Under the proposal by a newly formed company, owned 60 percent by Peabody and 40 percent by ArcelorMittal, Macarthur shareholders would be offered a cash price of A$15.50 per share through an off-market takeover offer. The new company has a relevant interest of approximately 16 percent in Macarthur’s shares.

The proposal price implies a value for the equity in Macarthur of approximately A$4.7 billion and represents a substantial premium to recent trading.

The proposal to Macarthur’s board is non-binding and conditional on the successful completion of due diligence, which would be completed in a timely manner. Any resulting offer to Macarthur shareholders would be subject only to minimum 50.01 percent acceptance, Australia’s Foreign Investment Review Board approval and other customary conditions and approvals.

According to Peabody Chairman and Chief Executive Officer Greg Boyce, “We believe there is significant value that can be created by managing Macarthur’s portfolio of coal assets using Peabody’s industry-leading operating, development and commercial skills. We look forward to advancing this proposal to complete a transaction for the benefit of Macarthur shareholders.”

Aditya Mittal, Chief Financial Officer and Member of the Group Management Board of ArcelorMittal, said: “ArcelorMittal has been a long-term investor in Macarthur, and we look forward to discussing our proposal with the board of Macarthur.”

Macarthur is the world’s largest producer of seaborne low volatile pulverized coal injection (LV PCI) coal with production and development assets in the Bowen Basin, Australia, including the Coppabella and Moorvale Joint Venture and Middlemount Mine. It controls total coal reserves of approximately 270 million tonnes (approximately 175 million tonnes on an attributable basis) and total resources of approximately 2.3 billion tonnes (approximately 1.7 billion tonnes on an attributable basis). It has current production guidance of 3.8 to 4.0 million tonnes for the year ended June 30, 2011.

Peabody is the world’s largest private-sector coal company and a global leader in clean coal solutions. With 2010 sales of 246 million tons and nearly US$7 billion in revenues, Peabody fuels 10 percent of U.S. power and 2 percent of worldwide electricity.

ArcelorMittal is the world’s leading integrated steel and mining company, with operations in more than 60 countries. In 2010, ArcelorMittal had revenues of US$78 billion and crude steel production of 90.6 million tonnes, representing approximately 8 percent of world steel output. ArcelorMittal’s mining operations produced 47 million tonnes of iron ore and 7 million tonnes of metallurgical coal as well in 2010.

Peabody has engaged UBS and Bank of America Merrill Lynch as its financial advisers and Freehills as its legal adviser in relation to the potential transaction. ArcelorMittal has engaged RBC Capital Markets as its financial adviser and Mallesons Stephen Jaques as its legal adviser in relation to the potential transaction.

Certain statements in this press release are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on numerous assumptions that Peabody believes are reasonable, but they are open to a wide range of uncertainties and business risks that may cause actual results to differ materially from expectations. These factors are difficult to accurately predict and may be beyond the company’s control. The company does not undertake to update its forward-looking statements. Factors that could affect results include those described in this press release as well as risks detailed in the company’s reports filed with the Securities and Exchange Commission.

Nothing in this announcement constitutes or is intended to constitute a proposal to make a takeover bid for Macarthur Coal Limited. There is no assurance that any such takeover bid will be made.

Macarthur reserves and resources and other information are based on public disclosures and exclude the MDL162 tenement.

CONTACT: Vic Svec +1-314-342-7768
Source: Peabody Energy