NEWSMAKER-Australia's "Coal King" sells at the top

By James Regan

SYDNEY, July 6 (Reuters) - Owning bars and restaurants as a hobby may have taught Australian mining magnate Ken "King Coal" Talbot something about getting out at the top of the market.

Talbot has been not so quietly selling for a premium most of his 20 percent stake in Macarthur Coal (MCC.AX: Quote, Profile, Research), the company he founded in 1996, pocketing more than half a billion dollars and igniting talk of a takeover fight between Macarthur's largest shareholders.

Talbot, the former chief executive, resigned last week from the Macarthur board to mitigate any conflicts of interest relating to his decision to sell out.

Talbot sold his shares to steel giants Arcellor Mittal (ISPA.AS: Quote, Profile, Research) which now holds 19.9 percent of Macarthur's stock, POSCO (005490.KS: Quote, Profile, Research) which has 10 percent, and Chinese investment group Citic Resource Holdings (1205.HK: Quote, Profile, Research) with 17.7 percent.

In the process Talbot has become one of Australia's wealthiest individuals, doubling his net worth to more than A$1.4 billion ($1.3 billion).

The son of a truck driver, Talbot recently told a group of financial analysts and journalists he never dreamed he'd be rich.

For a while the easy-going Talbot was known affectionately around outback mining camps as "swami" after ordering workers at his collieries to practice yoga.

He once sponsored an all-women's rugby team and still faces criminal charges dating back to 2002 for allegedly lending A$300,000 to a government minister so the minister's children could buy houses. Talbot denies doing anything wrong.