Caledon Resources (CDN) the Australian coal miner announced a new preliminary bid approach today, causing an increase in its share price to 63.75p.
Possible suitors could include:
1. Polo Resources - they already own 27.6% of CDN and have cash from the recent sale of their stake in extract energy. This may be unlikely as they returned a large portion of the cash to shareholders (3p per share special dividend).
2. Western Coal - this would represent a move towards being a worldwide player in the coal market (adding to their core Canadian, American and UK assets).
3. Xstrata - good match with their existing portfolio?
4. One of the many large USA coal miners?
Who would make the best match in your opinion?
Friday 17 September 2010
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Peabody have a history with Polo. Perhaps Polo would like to swap their CDN stake for Peabody shares
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