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Bloomberg reported that Whitehaven Coal is becoming increasingly attractive as a takeover target, given that analysts predict the price of coal is set to rise.
Bloomberg reported that Whitehaven Coal is becoming increasingly attractive as a takeover target, given that analysts predict the price of coal is set to rise.
As quoted in the market report:
Now, analysts are projecting coal prices will rebound from the steepest annual decline in seven years. Whitehaven’s takeover appeal is also increasing as the A$3.5 billion ($3.7 billion) company obtained financing and government approval for its biggest new project and expects to almost double production this fiscal year, according to Nomura Holdings Inc. A buyer could pay A$4.4 billion, less than Tinkler’s bid last year, according to Wilson HTM Investment Group. Possible suitors include Yanzhou Coal Mining Co. and China Shenhua Energy Co. (1088), said Investec Plc and Patersons Securities Ltd.