Banpu Plc, shareholder of 65% Indonesian coal producer Indo Tambangraya Megah, rose intra day in Bangkok today approaching +2% high ( http://www.bloomberg.com/apps/quote?ticker=BANPU:TB). (see intra day chart Banpu) Thailand's composite index (SET) slipped to -0,418% intra day ( http://www.bloomberg.com/apps/quote?ticker=SET:IND).
Early in the day, unverified news is circulated among sophisticated traders related to Thai equity desk that source closed to Banpu Plc. had advised on late Monday that Glencore, the biggest world coal trader, has approached Banpu for possible takeover or significant stake in Banpu's Indonesia subs Indo Tambangraya Megah for premium offering. Banpu currently has a stake in Indo Tambangraya Megah of 65 per cent and its Indonesia operation has contributed to 66% of Banpu's EBITDA last year. Excluding China, coal production of Banpu in 2010 totaled 22 million tonnes, mainly from Indonesian mines. Based on rising coal price, the company’s coal reserves in Indonesia increased to 329 million tonnes at the end of December 2010. Goldman Sachs (GS) on May 27 raised ITMG target price to IDR54,000 along with improved rating of ASEAN coal from previous "cautious". Seconding to GS, Morgan Stanley (MS) included ITMG as the only Indonesia representative into its Equity Strategy Focus List for GEMs (Global Emerging Markets) of 20 stocks across Asia Pacific. MS has ITMG latest target price for IDR64,000. [image: Banpu-Intra (June 7).png] '+'
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