The Alpha Natural Resources (ANR) acquisition of Foundation Coal (FCL) will create the nation's third largest coal producer, a consolidation that will help the sector as economies of size and synergies will drive efficiency, said an analyst on Tuesday.Alpha Natural Resources said Tuesday it plans to buy Foundation Coal for about $1.4 billion in stock. Foundation Coal shares soared $4.76, or 21%, to $28.01 in afternoon trading, while shares of Alpha slid $1.88, or 6.5%, to $26.95.
Coal Winners and Losers: Alpha Natural Resources
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
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
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.