Alpha Natural Buying Foundation Coal For $1.4B
CHARLESTON, W.Va. (AP) ¿ Alpha Natural Resources said Tuesday it plans to buy rival Foundation Coal for about $1.4 billion in an all-stock deal that would create the nation's third-largest coal producer.
Foundation Coal shares jumped nearly 21 percent.
Talk of another wave of consolidation in the coal industry has been growing louder in recent weeks and on Tuesday, Alpha Chief Executive Mike Quillen said the bid for Foundation reflected that need.Producers have wrestled with declining demand, falling prices and tight credit, not to mention increased environmental scrutiny under the administration of Barack Obama. "I think people had predicted that the Alpha-Foundation one was one that made a lot of sense," Quillen said in an interview. Combined, Alpha and Foundation would be well-financed ¿ they'd have approximately $743 million in cash and available credit ¿ and diversified. The companies would have 2.3 billion tons of coal reserves balanced between higher-profit Appalachian mines and high-volume western operations. Their 91 million tons of annual production from 59 mines would rank third behind Peabody Energy and Arch Coal.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV