Australian coal explorer Bandanna Energy is attracting interest from Chinese, Indian and other potential suitors as it prepares to short-list bidders for the company in a potential $1.4 billion deal.

 

Feasibility studies on Bandanna's key projects were expected to be completed this week, one of the sources close to the transaction said, which would pave the way for indicative bids.

 

Indicative bids had been originally due by the end of last month, but the feasibility studies have delayed the process, sources said. It is expected the bids will follow shortly after the studies are completed.

 

About 10 bidders were expected to make the short-list, including four Indian bidders, two Chinese and possibly Xstrata and Rio Tinto.

 

Bandanna, which holds coal exploration permits in the Bowen and Galilee basins in Queensland, last year appointed UBS to advise on a strategic review of the company's funding requirements which it said could involve the partial or total sale of its assets.