The Wall Street Journal-20080215-Resource Pacific Ltd-- Coal Miner May Recommend Takeover Offer From Xstrata

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Resource Pacific Ltd.: Coal Miner May Recommend Takeover Offer From Xstrata

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Coal miner Resource Pacific Ltd. said it will recommend the $1.1 billion takeover offer from Xstrata PLC if the suitor's stake passes 50%, after hopes that a third party would launch a rival offer faded. Resource Pacific said it has been in discussions with a third party over a possible bid. "After detailed consideration, the Resource Pacific board has formed the view that it is unlikely that a superior proposal could be developed in a timely manner with that third party and accordingly has concluded these discussions," the miner said in a statement. Resource Pacific said it still believes Xstrata's offer of 3.20 Australian dollars (US$2.90) a share doesn't recognize its full value. The company's directors won't accept the offer with regard to their own holdings for now, but if Xstrata's stake passes 50%, they intend to accept.