http://economictimes.indiatimes.com/News/CompaniesA-Z/Tata_Power_lines_u p_16-b_bid_for_30_in_Indonesian_co/articleshow/1606971.cms
Tata Power lines up $1.6-b bid for 30% in Indonesian co TIMES NEWS NETWORK[ WEDNESDAY, FEBRUARY 14, 2007 02:28:45 AM] BANGALORE/MUMBAI: A bidding war is looming large over Indonesia's largest coal firm Bumi Resources. Tata Power Company (TPC) is preparing to bid at about $1.6 billion for 30% of Bumi Resources in an attempt to counter Mitsubishi'a bid of $1.32 billion. The Japanese company's bid is the highest so far. "We have been asked to submit a binding bid by February-end," a senior TPC official said but declined to reveal details. Sources said the Mumbai-based power major may also look at hiking the bid, if found necessary. Bumi had put a reserve price at $1 billion but the stiff price tag could not deter bidders eager to own a slice of the company at a time when demand for natural resources is high. Five bidders were short listed including the Anil Ambani-owned Reliance Energy (REL) and Kepco, a power major from South Korea. "Tata Power's bid has put the valuation of Indonesia's largest coal producer and exporter at $5.2 billion," said sources. Tata Power, which won the 4,000-mw Mundra ultra-mega power project, has been scouting for imported coal at cheaper rates. It would need to import around 12 million tonnes of coal annually starting 2012 for the project, which banks on imported coal. Sources said Tatas were in talks with many coal suppliers and traders overseas to tie up uninterrupted coal supply. It then decided to buy part-equity of large foreign coal firms. "Acquiring coal mines would help in assured fuel supplies. Moreover, Indonesian coal has lower ash content and higher calorific value as compared to domestic coal. It would result in higher power generation with less fuel," said sources. Reliance Energy now imports around one million tonnes of coal for its 500 mw power plant at Dahanu in Maharashtra. Sources said REL was looking at tying up supplies of 20 million tonnes of coal.
