Anglo-Australian mining giant BHP Billiton Ltd. (BHP) is considering a $6 billion offer for Birmingham, Ala.-based Walter Energy Inc. (WLT), the world's largest producer of coal used for steel making, The Australian reported in its Saturday morning edition.

The bid would support BHP's view that supply of coking coal will be scarcer than iron ore in the next decade, the report said.

In July, Walter Energy shareholder Audley Capital Advisors LLP urged the company's board to explore a sale because it lacked the leadership to take advantage of an "unprecedented market opportunity" after coal prices jumped.

Rival bidders for Walter Energy could include Anglo American PLC (AAL.LN), Rio Tinto Ltd. (RIO.AU), Vale S.A. and Companhia Siderurgica Nacional (SID), the report said.

Full story at http://www.theaustralian.com.au/business/mergers-acquisitions/bhp-set-to-bid-6bn-for-us-coal-giant-walter-energy/story-fn91vdzj-1226167127979

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