The companies are said to be keen to expand their metallurgical coal footprint and increase exports while coking coal prices near record levels and the industry reaches a consolidation phase.

According to Bloomberg, the initial report from the UK newspaper Independent said that the bidders may be advised by JPMorgan Chase and Goldman Sachs, adding that other possible bidders may include Brazil-based Vale and Cia Siderurgica Nacional.

A report from Dow Jones Newswires also cited Rio Tinto as a potential suitor.

The takeover rumblings are not new; in early September London’s The Times newspaper said that both Anglo and BHP were considering a $US120-per-share offer for Walter, which purchased Canadian miner Western Coal in April for $C3.3 billion.

Walter’s Keith Calder, who was the former chief executive officer of Western Coal, resigned in June and cited differences of opinion with the philosophy of the company’s management.

Walter Scheller was named the permanent chief executive officer on September 12.

In July, Walter dismissed a claim by one of its largest investors that it lacked strong leadership for growth and should put itself up for sale.

Audley Capital said post-buyout of Western Coal earlier this year, it was concerned Walter did not have the sufficient executive management needed to deliver on plans to earn highest-ever revenues in 2011 and ramp up production to 20 million tons annually by 2013.

The company responded by highlighting both its increasing share price and the committed and experienced management team at the helm of the company.

Walter Energy operates mines in Alabama and West Virginia as well as British Columbia and Wales.