Rumors Continue To Link Peabody and Whitehaven

Peabody Energy BTU, the largest U.S. coal producer, has once again been mentioned as possible suitor for Australia's Whitehaven Coal, a maker of pulverized coal for steelmakers. The rumor was first reported in June after Whitehaven's development of the $294 million Narrabri mine reportedly made the company more attractive to potential buyers. Whitehaven shares soared as much as 10% during the Sydney trading session on speculation the company is in talks with suitors. Almost $3.7 billion of coal deals have been struck in Australia in the past week alone, leaving Whitehaven as one of the few Australian companies without a global partner. Peabody has been attempting to acquire Australian assets to cash in on increased demand for coal from China. Peabody tried to acquire Australia-based Macarthur Coal, the world's largest maker of pulverized coal, several times before scuttling its bid after Macarthur rejected a third Peabody overture. The Australian Financial Review reported that Whitehaven had received some interest from Chinese and Indian companies. South Korean steel giant Posco PKX may have approached Whitehaven, but the company denied that.