Xstrata's revised A$1.08 billion offer fails to "impress" Resource Pacific

08 February 2008

Mumbai: Australian coal mining company Resource Pacific Holdings has rejected a sweetened cash offer by Xstrata, the world's largest exporter of thermal coal, saying it was "unimpressed" by the offer which valued it a little over $1 billion.

The Swiss-based Xstrata increased its unconditional cash offer from A$2.85 ($2.55) per share to A$3.20 ($2.86), valuing Resource Pacific at A$1.08 billion (US$964.8 million).

Xstrata said the new offer price of $3.20 a share, which was 12 per cent higher than the $2.85 previous offer, was final.

Resource Pacific is currently mining one of the largest identified semisoft coking coal seams in the Hunter Valley of New South Wales state, with more than 252 million tonnes in reserve.

The miner had rejected an all-share approach by New Hope, five days after Xstrata launched its first offer in last December.

Xstrata's revised offer came just hours before the original offer was to expire.