FBR Capital notes M&A is continuing to be focus for the coal group in recent weeks, with reports continuing to highlight multiple transactions potentially in works. This morning media reports indicate RIO's plans to increase its bid for Riversdale by about 7%. Back home in US, MEE is considered to be weighing offers from multiple bidders but hasn't formalized the process of auctioning the co yet. Positive trends also continue to emerge for producers with Chinese coal imports (both steam and met) continuing to rise MoM and the Australian govt policy group coming out in support of the miners on the issue of including credits for future state royalties. This is positive for Australian resource stocks, particularly iron ore and met coal levered.