Massey weighs offer from Alpha Natural – WSJ
TORONTO (miningweekly.com) - Shares in Massey Energy jumped 11,2% on Friday, after the Wall Street Journal reported that the company was mulling a takeover offer from rival Alpha Natural Resources.
The article cited unnamed people familiar with the matter.
Massey is the owner of the Upper Big Branch coal mine, in West Virginia, where 29 workers died in an explosion in April.
The company is expected to review options that include an auction or a recapitalisation at a board meeting later this month, the Wall Street Journal said.
Massey could take on more debt to pay shareholders a dividend or buy back shares, the article said.
Alpha Natural, which acquired rival Foundation Coal last year, has operations in Virginia, West Virginia, Kentucky, Pennsylvania and Wyoming.
CEO Kevin Crutchfield said in August the company continued to pursue acquisition opportunities.
Massey shares closed at $46,94 apiece in New York on Friday.