Rebecca Thurlow, Dow Jones Newswires | May 02, 2008XSTRATA is in...

Rebecca Thurlow, Dow Jones Newswires | May 02, 2008

XSTRATA is in takeover talks with Macarthur Coal after approaching the miner about a possible bid, a person familiar with the situation said today.
A spokesman for Xstrata wasn't immediately available for comment.

Macarthur Coal (ASX: MCC: quote) said in April it had received an approach from a third party in relation to a potential transaction.

Without naming the company that made the approach, the Australian miner said the discussions were incomplete and conditional, and no formal proposal had been received.

JP Morgan is advising Macarthur Coal and Rothschild is advising Xstrata.

Shares of Macarthur Coal were up 3.3 per cent $17.45 by mid-afternoon. The benchmark S&P/ASX 200 Index was 1.8 per cent higher.