Resource Pacific says in talks with third party

SYDNEY (Reuters) - Australian coal miner Resource Pacific Ltd RSP.AX said on Monday it is 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). Resource Pacific said the talks were at an early stage. It 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 has said an independent assessment has 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 resources industry 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 amassed 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), Centennial Coal (CEY.AX: Quote, Profile, Research), Whitehaven Coal (WHC.AX: Quote, Profile, Research) and Peabody (BTU.N: Quote, Profile, Research) as other potential bidders for coal resources.

Resource Pacific operates the Newpac coking and thermal coal mine, which neighbors Xstrata mines in the Hunter Valley region of New South Wales state.

Xstrata launched its first offer for Resource Pacific in December at A$2.85 a share, trumping an all-share offer from another Australian coal miner, New Hope Corp (NHC.AX: Quote, Profile, Research).

(Reporting by Jonathan Standing)