This article is 16 years old. Images might not display.
Takeover talks have sent the producer’s shares flying, jumping 51% mid-morning today to $A8.22.
The Financial Review identified Yanzhou as the suitor, stating company representatives visited Felix's Ashton coal mine in New South Wales yesterday.
Amid the media speculation, Felix this morning issued a statement verifying purchase talks.
“Felix confirms that there is ongoing interest in a potential change of control transaction. All indications of interest remain incomplete, non-binding and subject to completion of due diligence and other conditions,” Felix said.
The deal would be worth $A3 billion.
Yanzhou Coal already owns operations in Australia, including the country’s only longwall top coal caving operation, Austar.
Over the past six months analysts have speculated on BHP Billiton, Xstrata, Vale, Rio Tinto and Citic as prospective suitors.
In an address to shareholders last month, Felix chairman Travers Duncan said the company was continuing with talks but nothing certain had eventuated as yet.
“In a difficult market environment we are working as quickly as possible to finalise these discussions,” Duncan said.
