Is Talbot's move paving way for Mittal takeover?

Macarthur Coal Ltd's largest shareholder Ken Talbot resigned as a director after selling part of his stake to ArcelorMittal, spurring speculation that a bid for the A$4.4 billion ($4.2 billion) company is imminent.

Talbot, who sold a 4.3 percent stake to ArcelorMittal last month, resigned "to avoid any conflict of interest in dealing with" his remaining 19.76 percent holding, he said yesterday. Brisbane-based Macarthur, the world's biggest exporter of pulverized coal, halted its shares from trading pending the outcome of talks with ArcelorMittal.

ArcelorMittal, the world's largest steelmaker, paid A$631 million for a 14.9 percent stake as mills seek to lock in raw- material supplies amid record prices.