Australian coal explorer Bandanna Energy Ltd. (BND.AU) said Wednesday it has invited suitors to submit takeover bids or offers to invest in projects it is developing, although it hasn't yet prepared a short-list of candidates.

The invitations have been sent to a number of interested parties, calling for indicative bids by the close of business May 4, the company said in a statement. Bandanna didn't disclose any names, saying the process was confidential, although speculation is likely to turn to coal mining companies already in the region and coal-hungry buyers in Asia.

Bandanna's shares ended trading Wednesday up 14% at A$2.12, giving it a market value of about A$793 million.

Bandanna holds 16 exploration permits in the Bowen and Galilee basins of coal-rich Queensland state, plus other licenses to explore for minerals and oil shale in the state. According to the company, it has a resource of more than 1.4 billion metric tons, which represents the largest thermal coal inventory for any exploration company in Australia.

The company also has an allocation for 4 million tons a year at the planned Wiggins Island Coal Export Terminal, which would allow it to ship from early 2014.

The company will short list candidates and begin negotiations to draw out a deal or combination of transactions that will best deliver value to shareholders, Bandanna said.

"Transactions could include acquiring an interest in one or more development projects, or a whole of asset or corporate transaction," it said.

The company launched a strategic review late last year and appointed UBS AG as advisor to help it identify ways to raise funds needed to develop three key projects in the Bowen Basin.

Spokesmen for Rio Tinto PLC (RIO) and the coal division of Xstrata PLC (XTA.LN), both of which operate coal mines in Queensland, declined to comment on any interest in Bandanna's assets.

Power companies in India, which has an energy deficit, are on the lookout for coal to fuel power stations. Newspapers in the country have reported that companies there could be interested in Bandanna.

Bandanna in its statement said it "has not formed any view as to which parties will be included in the short-list for further negotiations as the date for submission of nonbinding indicative bids has not yet been reached."

-By Robb M. Stewart, Dow Jones Newswires; +61 3 9292 2094; robb.stewart@dowjones.com
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