additional likely suitors?, page-4

latest update from Patersons;

The bid price is at a big premium to the recent share price but it is still below our recent valuation of $1.72 per share. The market has reacted strongly to the announcement, with the shares hitting $1.60 after trading resumed and are currently trading at $1.55, implying that there may be a better offer to come.
?h
The bid works out on an EV/t basis at $0.33/t of total resources and looks relatively cheap when compared to recent transactions. We calculated an average EV/t average of $1.70/t for recent coal IPOs and mine acquisitions. This would imply a valuation that would be hard to achieve but at the minimum we would anticipate a takeover at around the $0.50/t or $2.20 per share, which may also be ambitious relative to a bidder that has a well-established history of not paying big premiums.
?h
A higher price than $1.50 may be achieved if either Xinyang, which has 13% of the stock or Xstrata, which has the big Wandoan deposit next door to NEC??s Elimatta project.
?h
We reiterate our BUY recommendation with a price target of $1.70 per share but recognise that a higher price is entirely possible if a competitive bidding situation were to emerge.