Whitehaven says to drop merger deal with Gloucester

SYDNEY, May 18 (Reuters) - Australian coal miner Whitehaven Coal Ltd (WHC.AX) said on Monday it has dropped a planned merger with fellow miner Gloucester Coal Ltd (GCL.AX) after Gloucester recommended an improved rival bid by commodity trader Noble Group (NOBG.SI)

Noble raised its offer for Gloucester Coal on Friday to A$7 a share, or A$572 million ($429 million) (see [ID:nSYD477482]).

Gloucester's board has declared the new Noble bid superior and recommended its shareholders accept it. (Reporting by Fayen Wong)