Resource Pacific Holdings (RSP) announced today that it is in talks with a third party, which may result in a more attractive takeover offer than the $1.077 billion bid Xstrata has put on the table Friday.
"These discussions are at an early stage and Resource Pacific will keep the market informed about the status of these discussions," Resource Pacific said in a statement.
Hours before Xstrata's original offer of $2.85 per share was due to expire on Friday, the Swiss-based mining giant sweetened the bid by 12% to $3.20 per share and extended the bid period.
Resource Pacific said the offer was "unimpressive" and continued to recommend that shareholders take no action.
Xstrata said the revised offer price was final and surpassed Resource Pacific's all-time trading high.
"Xstrata Coal remains sceptical of Resource Pacific's recent announcement, considering Resource Pacific managing director Paul Jury publicly confirmed another bidder was highly unlikely to beat Xstrata Coal's earlier offer price of $2.85, which has been in the market place for two months," Xstrata spokesman James Rickards told AAP.
"It appears rather odd he is now asking shareholders to believe a bidder may have entered well above $3.20."
Mr Jury told AAP last month that several potential suitors from Australia and overseas had "walked away" under the assumption that they could not compete with Xstrata's buying power.
Mr Rickards was also critical of Resource Pacific's claims it will double production to eight million tonnes per annum, saying that it is time "to provide as much detail as possible to shareholders and stop leading them along with grand promises".
Xstrata has repeatedly called the plans unrealistic and said they do not stand up to scrutiny.
Mr Rickards also warned that this would be Resource Pacific's last chance to accept Xstrata's offer.
"They should remember that our price is final."
Xstrata's new offer is scheduled to close at 7PM on February 22.
On Friday, Mr Jury said the board would meet as soon as possible to discuss Xstrata's improved offer and would then formally advise its shareholders on a course of action, which according to analysts is almost certain to be a rejection.
Mr Jury told AAP the revised bid was a sign of Xstrata's desperation to acquire Resource Pacific.
As of this morning, Xstrata now holds a 19.09% stake in the coal producer.
Shares in Resource Pacific were 29 cents, or 9.73% higher to close at $3.27.
