UPDATE 1-Harbour Energy bids $10.4 bln for Australia's Santos

(Adds details about funding, executive commentary)

April 3 (Reuters) - Australian gas producer Santos Ltd said on Tuesday it has received a $10.4 billion takeover bid from private equity-backed Harbour Energy and has agreed to grant Harbour access to due diligence.

The offer values Santos at $4.98 per share or A$6.50 per share, a 28 percent premium to the Adelaide-based company's last closing share price of A$5.07.

Harbor's offer consists of $4.70 per share in cash and a special dividend of $0.28 per share.

Harbor plans to fund the takeover through a combination of debt and equity, with J.P. Morgan and Morgan Stanley underwriting $7.75 billion of debt.

With the support of these providers of capital, Harbour stands ready to move expeditiously towards entering into a Scheme Implementation Agreement and to commencing all necessary government and regulatory review processes," said Linda Cook, CEO of Harbour Energy.

Santos revealed in November it had rebuffed a A$9.5 billion takeover approach from Harbour Energy in August, saying it undervalued the company.

($1 = 1.3053 Australian dollars) (Reporting by Aditya Soni in Bengaluru; Editing by Jane Wardell and Stephen Coates)