Good evening,

The underdog in Anglo American’s $US3 billion ($4.6 billion) Queensland coal auction has pulled to the front of the pack, as the London-listed miner races against the clock to lock in a preferred bidder.

Street Talk understands Peabody Energy, capitalised at $US3.35 billion on the New York Stock Exchange, is among bidders still standing in the auction. It’s expected to team up with Indonesian player BUMA, a mining contractor that was an underbidder at BHP’s $6 billion-plus sale of Blackwater and Daunia coal mines last year.

Sources said Moelis is among Peabody’s roster of advisers, and its Missouri-based CFO, Mark Spurbeck, was in Sydney last month to meet with lending banks. It is competing against a consortium that includes ASX-listed Stanmore Resources, the Singaporean Widjaja family’s Golden Energy and Resources and Matt Latimore’s M Resources, which has hired Deutsche Bank for advice.

• Navis taps two investment banks for $1.5 billion Device Technologies exit
• Anglo American‘s coal sale turns into two-horse race; Mubadala lurks
• Pacific Smiles founder backs Genesis bid…but he’s not selling
• Done deal! Di Pilla’s data centre REIT DigiCo locks its $2.75 billion ASX debut
• Ex Glencore traders outmanoeuvre Swiss juggernaut at True North Copper
• Cuscal’s $336.8 million IPO to close early: book message

• Jarden sues ex-client after getting cut from $300 million deal
• Airtree raises $650 million for new start-up investment funds
• Popular restaurant ordering app me&u lays off 10 per cent of staff

In a choppy session, Australian shares inched lower on Thursday as investors struggled for direction following a mixed earnings report from the world’s largest listed company.

Click here for the latest equity market wrap.