Anglo-Swiss miner Xstrata has increased its unconditional all-cash offer for Australian coal miner Resource Pacific Holdings by 12 percent.
The all-cash offer, from A$2.85 per share to A$3.20, values Resource Pacific at A$1.08bn or US$964.8m.
However, the offer has failed to impress the board at Resource Pacific, according to Forbes.
Xstrata, which says it has a relevant interest in over 18 percent of Resource Pacific's share capital, will not increase its offer from this point.
"In the absence of Xstrata's offer, shareholders may face an uncertain future, being fully exposed to the business impact of the cumulative production shortfalls from the Newpac mine and future mining risks," Xstrata says in a statement.
Resource Pacific has advised its shareholders to take no action over Xstrata's increased offer.
Resource Pacific is currently mining one of the largest identified semi-soft coking coal seams in the Hunter Valley of New South Wales, which holds more than 252 million metric tons.
The offer is scheduled to close at 7pm (Sydney time) on 22 February 2008.
By Ozge Ibrahim
