Saturday, November 06, 2010
Massey Shares Soar
KENTUCKY & WEST VIRGINIA....
Massey Energy shares jumped more than 11 percent Friday on rumors of a takeover offer from rival Alpha Natural Resources. The Wall Street Journal reported that Alpha Natural Resources Inc. was considering a buyout of Massey, and that Massey officials had hired investment bank Perella Weinberg as an adviser on Alpha's possible bid and will review its options at a board meeting later this month.
Massey CEO Don Blankenship says his company is undervalued because the strength of its coal reserves isn't given enough weight. Massey holds about 2.9 billion tons of reserves. Around 1.3 billion tons is metallurgical coal, which is in strong demand by international steelmakers.
Alpha is the largest U.S. metallurgical coal producer and would control a big piece of the emerging international market if it were to acquire Massey.
Alpha is the largest U.S. metallurgical coal producer and would control a big piece of the emerging international market if it were to acquire Massey.
# posted by Homer Owens @ 5:38 PM 
