Friday, 17 September 2010

Caledon Resources - who is the bidder?

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?

1 comment:

  1. Peabody have a history with Polo. Perhaps Polo would like to swap their CDN stake for Peabody shares

    ReplyDelete

Any comments on this blog? If so, please let me know!