Yanzhou says Gloucester board approves merger

Gloucester Coal has agreed to a 9 percent cut in the cash portion of a takeover offer from China's Yanzhou Coal Mining, gold mining methods used in malaysiareflecting revised debt calculations for the two groups due mainly to a stronger Australian dollar.

Gloucester's board recommended the offer on Tuesday, under which shareholders will receive A$639 million, or A$3.15 a share in cash, and a 22 percent stake in what will be Australia's biggest listed coal miner. That is down from A$700 million in cash and a 23 percent stake in the merged group proposed last December. "The Gloucester Board unanimously believes shareholders should support the proposal as it provides an opportunity to participate in the benefits of creating a world class coal producer," Gloucester Chairman James MacKenzie said in a statement. Yancoal's debt contribution has been reduced by A$300 million to about A$2.4 billion, as a rising Aussie dollar has...