POSCO's fourth proposed bid up 15% from first approach Proposed...

• POSCO's fourth proposed bid up 15% from first approach
• Proposed bid 44% above Senex's share price on July 30
• Billionaire Gina Rinehart looks to take stake in Senex

(Adds POSCO International background, gas field purchase)

Australian coal seam gas producer Senex Energy Ltd (SXY) said on Monday it would recommend an A$852 million ($630 million) takeover offer from POSCO International Corp, after the South Korean firm raised its proposed bid for a third time.

POSCO International, the trading arm of steel giant POSCO 005490.KS , hiked its offer by 4.5% to A$4.60 a share after reviewing Senex's books. The proposal was just above Friday's close but 44% above Senex's price on July 30, when POSCO first approached it with an offer of A$4.00 a share.

POSCO International owns oil and gas stakes in Southeast Asia and is looking to diversify with Senex's gas operations, which supply Australia's tight east coast market and the Gladstone liquefied natural gas (LNG) export project.

It is attracted by Senex's strong growth prospects and Australia in general, where parent POSCO has a stake in the Roy Hill iron mine, majority owned by billionaire Gina Rinehart's Hancock Prospecting, an external spokesperson said.

Another arm of Rinehart's businesses, Hancock Energy, has expressed interest in buying a stake in Senex if POSCO International succeeds with its bid, Senex said.

The latest offer from POSCO International includes a proposed acquisition by Senex, announced on Monday, of some undeveloped gas fields from Australia Pacific LNG for A$80 million.

Those fields, next to Senex's Atlas field, will help Senex expand Atlas gas production to 30 petajoules a year in 2024, up from 18 PJ a year.

Senex's shares rose 3.4% to A$4.61 a share after the announcement. ($1 = 1.3517 Australian dollars) (([email protected]; Twitter: https://twitter.com/sameer_manekar))