Analyst Upgrades Alpha Natural Rating On Purchase

His revised earnings-per-share forecast called for 58 cents, down from 67 cents in the second quarter; 50 cents from 59 cents in the third quarter; 67 cents from 80 cents in the fourth quarter and $1.65 from $1.97 for the full year.

Alpha announced plans to acquire Foundation last month. The combined company would have about $743 million in cash and available credit and 2.3 billion tons of coal reserves balanced between higher-profit Appalachian mines and high-volume western operations.

Shares of Alpha Natural rose 85 cents, or 3 percent, to $29.59 and shares of Foundation Coal rose 71 cents, or 2.3 percent, to $31.44 in afternoon trading.