US coal play Coal International says it has received a 'preliminary approach', which may or may not lead to a bid.

The AIM-quoted company, of which fallen star Cambrian Mining holds 34 per cent, is involved in several projects, from the USA to Canada and the UK. Coal International's key operation is at Maple Creek in West Virginia, for which it raised £28.5 million at 28p last May.

Helped by acquisitions, the company boosted turnover from £2.9 million to £18 million in the year to last June, but also increased its annual loss 50 per cent to £12.4 million. Floated at 75p in 2005, Coal International's shares rose to 116p that year, but collapsed all the way to 17.5p earlier this month.

At 27p, up 8.75p today, their immediate prospects hinge on the outcome of the present talks. Whether the interested party is currently unconnected or part of the same constellation of companies could have a bearing.

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