Shares of Walter Energy Inc jumped by 28% on Wednesday morning after a report that Anglo American was weighing a bid for the metallurgical coal miner.

The Times of London newspaper said in its market report on Wednesday that there were rumors of a bid for Walter by diversified mining group Anglo American.

The report said Anglo was said to be weighing an offer for Walter, pitched at USD 120 a share and would discuss the matter over the weekend.

However, analysts at London broker Liberum Capital called such an offer unlikely, citing Anglo's minimal presence in US coal markets.

(Sourced from Reuter)