Xstrata ups bid for Resource Pacific to $964 million

SYDNEY (Reuters) - Swiss-based Xstrata on Friday raised its cash offer for Australian coal miner Resource Pacific Ltd by 12 percent to A$1.08 billion ($964 million) and declared it final.

Resource Pacific Managing Director Paul Jury told Reuters the new offer was "unimpressive" and his board was advising its shareholders against taking any immediate action while it prepared a formal response to the sweetened offer.

Xstrata in December launched its first offer for Resource Pacific at A$2.85 a share, trumping an all-share offer from another Australian coal miner, New Hope Corp . Resource Pacific earlier on Friday formally rejected that offer. A company spokeswoman said a response to the latest offer was under discussion by the company.

Shares in Resource Pacific, which has a market value of about A$1 billion, ended 0.7 percent higher at A$2.98, with the increased offer coming after the close of trade on Friday.

Resource Pacific operates the Newpac coking and thermal coal mine, which neighbors Xstrata mines in the Hunter Valley region of New South Wales state.

"Given the (Xstrata) offer is now final, it allows us to go out and actively explore all of the options available to us," Jury said.

(Reporting by James Regan; Editing by James Thornhill)