Bloomberg reported that Lubelski Wegiel Bogdanka SA, the Polish coal producer whose management last month rejected a PLN 3.43 billion bid from New World Resources NV as too low and expects a premium for control of as much as 50 percent.

Mr Miroslaw Taras CEO of Bogdanka said Bogdanka value is far above NWR bid of PLN 100.75 a share as well as BRE Bank SA estimate of PLN 125.9. The producer of thermal coal, used by power producers, has jumped 51 percent this year trading at PLN 107.5 at 2:10 PM in Warsaw.

Mr Taras said “NWR’s price doesn’t take into account our growth prospects, nor does it include a premium for control. In developed markets and among commodity producers, premiums for control amount to 30% to 50% and I see no reason why anybody should offer less for Bogdanka.”

NWR bid for 100% of Bogdanka which ends November 29 may fail as Aviva Powszechne Towarzystwo Emerytalne SA, the Polish pension fund that the biggest single shareholder of Bogdanka with 15% and Amplico Powszechne Towarzystwo Emerytalne SA which has 5.1% said that the company is worth more than the bid price.

Mr Taras said “At the current price a majority of Bogdanka owners won’t sell their shares and the bid will fail.”

Bogdanka, Poland only publicly traded coal miner aims to double coal extraction to 11.5 million tonnes in 2014, investing PLN 1.8 billion. It raised PLN 528 million in an initial public offering last year to help finance expansion.

(Sourced form Bloomberg)