Resource Pacific says in talks with third party

SYDNEY (Reuters) - Australian coal miner Resource Pacific Ltd RSP.AX said it was in talks with a third party that may result in a more attractive proposal than an existing A$1.08 billion ($973 million) bid from global miner Xstrata (XTA.L: Quote, Profile, Research, Stock Buzz). Resource Pacific said on Monday the talks were at an early stage and did not give further details.

Swiss-based Xstrata raised its bid by 12 percent to A$3.20 a share on Friday, but Resource Pacific described the sweetened offer as "unimpressive" and advised shareholders against taking any immediate action.

Resource Pacific stock galloped more than 10 percent higher to A$3.30 a share, but still below what the company has said an outside evaluation says it is worth.

An Xstrata spokesman said he was "skeptical" of Resource Pacific's announcement of talks with another party, given Xstrata's new offer, and called on the company to disclose more information.

"This is Resource Pacific adopting hope as a method of operating their business," he said.

Resource Pacific has said an independent assessment valued the firm's shares at A$3.56-A$4.09 apiece, with a preferred value of A$3.82 a share, which would value the company at about A$1.29 billion.

Xstrata has been one of the most acquisitive foreign companies in the Australian mining sector since buying MIM Holdings' zinc and copper mines in 2003, and its move on Resource Pacific comes as coal prices rocket amid a supply shortage.

The Swiss-based company, which extended its bid to February 22 and declared it final, has acquired a 19.09 percent stake in Resource Pacific through subsidiary Titan Holdings,

Analysts have previously mentioned collieries including Felix Resources (FLX.AX: Quote, Profile, Research, Stock Buzz), Centennial Coal (CEY.AX: Quote, Profile, Research, Stock Buzz), Whitehaven Coal (WHC.AX: Quote, Profile, Research, Stock Buzz) and Peabody (BTU.N: Quote, Profile, Research, Stock Buzz) as other potential bidders for coal resources.