UK Coal admits approach for its deep mining assets

By Rowena Mason 600AM GMT 10 March 2010

UK Coal

The miner, that declined to name the suitor, denied reports that it had perceived a money suggest for the total business.

But the share cost rose 6, or 12pc to 59p, after the association certified reception an countenance of seductiveness that "could residence the group"s bearing to the flighty opening of the low mines by a merger".

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UK Coal has had poignant problems with the five low mines over the past year, causing the shares to tumble by roughly half in 6 months. Industry insiders referred to that any predator could see to take these producing mines and sell off the profitable skill portfolio.

One researcher mooted Glencore, Xstrata, Anglo Pacific, Western Canadian Coal, Caledon or ATH as intensity suitors since they already have links to the coal-mining industry.

"The bearing of the organisation to the flighty opening in the low mines is a poignant regard to the directors and mitigating the goods of this exposure, by handling improvements or constructional means, is a priority," UK Coal pronounced yesterday.

It additionally certified that prolongation on the new face at Daw Mill nearby Coventry will be behind by a month until April.

The matter followed reports that UK Coal"s largest shareholder, Peel Holdings, had deserted an proceed for the 28.3pc interest since it was operative on the own money offer.

UK Coal reported a full-year loss in Jan and pronounced the worth of the skill fell to �394m compared with �422m a year earlier.

UK Coal declined to criticism over the statement.