Whitehaven Coal Open to Offers

Whitehaven Coal (ASX:WHC) has begun the formal process of hunting for potential bidders for the company. The shares in the company soared after the board of directors decided that any potential buyers would be given full access to the financial data of the company as part of the bidding process.

The company has been attracting bidders since August this year and has finally decided to formalize the bidding process so that the best potential bid can be identified. The company is now in talks with potential buyers but the board statement also warned that the process will be a long one. The news has made the shares rise 8.92% at close of play on Friday.

The Gunnedah Basin focused company has been identified as a takeover target by Glyn Lawcock an analyst at UBG AG. Since it is one of Australia's few remaining substantial independent coal producers it will be targeted by overseas companies. Another possible takeover target is Riversdale Mining Ltd.

Whitehaven managing director Tony Haggarty is boosting the perceived value of the company by saying that it has a significant strategic position and a strong growth prospect.