Shares in New Hope Corporation Limited (ASX:NHC) leapt more than 20 per cent this morning after the Queensland coal producer revealed it had received a number of preliminary takeover proposals.
While New Hope has not named the bidders speculation has emerged Swiss mining giant, Xstrata, could be a likely suitor.
The company will now invite others to submit offers and then undertake a formal process to evaluate the proposals.
Chairman Robert Millner says New Hope has a very large reserve and resource base and significant development pipeline, as well as being a low cost producer with access to infrastructure.
In the 2011 financial year New Hope Corporation almost tripled its full year net profit to $503 million, though its profit on an underlying basis fell 20 per cent.
