U.K. Coal Plc, Britain's largest supplier of the fuel, advanced the most in more than seven years in London trading after it received an approach for its mining and power generation assets.
Austria's Meinl International Power Ltd., asked for a meeting with U.K. Coal or its advisers in 2008, the Sunday Times said yesterday, citing a letter Meinl sent to the mining company. Discussions aren't expected, Doncaster, England-based U.K. Coal said today in a statement distributed by the Regulatory News Service. It didn't identify who made the approach.
``There's a lot of value to be had from the mining business and I'm not certain an offer would reflect that potential,'' Charles Kernot, an analyst at Seymour Pierce in London, said in an interview. ``U.K. Coal has looked into splitting the property and mining businesses and concluded that it's not in the best interests of shareholders.''
Austria's Meinl International Power Ltd., asked for a meeting with U.K. Coal or its advisers in 2008, the Sunday Times said yesterday, citing a letter Meinl sent to the mining company. Discussions aren't expected, Doncaster, England-based U.K. Coal said today in a statement distributed by the Regulatory News Service. It didn't identify who made the approach.
``There's a lot of value to be had from the mining business and I'm not certain an offer would reflect that potential,'' Charles Kernot, an analyst at Seymour Pierce in London, said in an interview. ``U.K. Coal has looked into splitting the property and mining businesses and concluded that it's not in the best interests of shareholders.''
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Coal prices have risen to a record in 2007 as global demand from countries including China has outstripped production growth. Supply bottlenecks at Australian ports and heavy rains in Indonesia have also constrained supplies of coal to Asia.
U.K. Coal rose 67.5 pence, or 18 percent, to 450 pence on the London Stock Exchange, the biggest one-day gain since June 14, 2000. The stock has advanced 8.2 percent this year, giving the company a market value of 707.1 million pounds ($1.4 billion).
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Karl-Heinz Grasser, Austria's former finance minister, set up Meinl International with Julius Meinl, chairman of Meinl Bank AG. U.K. Coal plans to reject the approach, the Financial Times said yesterday in a report on its Web site, without saying where it got its information.
Kernot said he values U.K. Coal's mining business at 346 million pounds, or 218 pence a share. The company operates underground and open-pit coal mines.
Chief Executive Officer Jon Lloyd is trying to expand the company's real-estate interests. U.K. Coal has 47,500 acres of land and has plans for 71 real-estate projects. including the construction of 25,000 homes and 29 million square-feet of office space on former mining sites.
A voicemail left with U.K. Coal spokesman Anthony Carlisle wasn't immediately returned. Calls to Meinl International's head office weren't answered.
U.K. Coal said in September its first-half net income more than tripled to 53.6 million pounds after an increase in the value of its real-estate portfolio.
U.K. Coal rose 67.5 pence, or 18 percent, to 450 pence on the London Stock Exchange, the biggest one-day gain since June 14, 2000. The stock has advanced 8.2 percent this year, giving the company a market value of 707.1 million pounds ($1.4 billion).
Real Estate
Karl-Heinz Grasser, Austria's former finance minister, set up Meinl International with Julius Meinl, chairman of Meinl Bank AG. U.K. Coal plans to reject the approach, the Financial Times said yesterday in a report on its Web site, without saying where it got its information.
Kernot said he values U.K. Coal's mining business at 346 million pounds, or 218 pence a share. The company operates underground and open-pit coal mines.
Chief Executive Officer Jon Lloyd is trying to expand the company's real-estate interests. U.K. Coal has 47,500 acres of land and has plans for 71 real-estate projects. including the construction of 25,000 homes and 29 million square-feet of office space on former mining sites.
A voicemail left with U.K. Coal spokesman Anthony Carlisle wasn't immediately returned. Calls to Meinl International's head office weren't answered.
U.K. Coal said in September its first-half net income more than tripled to 53.6 million pounds after an increase in the value of its real-estate portfolio.
Via: Bloomberg|Mark Herlihy
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