NEW YORK (
Alpha Natural Resources
is reportedly close to a deal to acquire
for roughly $7 billion in cash and stock.
According to the
Wall Street Journal
, the terms being discussed call for Massey Energy shareholders to receive a consideration of $68 per share with a breakdown of $10 in cash and the rest in Alpha Natural stock.
Shares of Massey Energy closed Friday's regular session at $57.22, up 5.2%, so the reported deal represents a 19% premium. Volume of 8.1 million was a little less than half of the issue's trailing three-month daily average of 4.6 million. Over the past 52 weeks, the stock has risen nearly 50%, hitting a 52-week high of $58.47 on Jan. 13.
Massey Energy, based in Richmond, Va., operates coal mines in Kentucky, Virginia, and West Virginia. The company is slated to report its quarterly results after the closing bell on Feb. 1, and Wall Street is expecting a loss of 31 cents a share in the December period from Massey on revenue of $748.8 million.
Alpha Natural is headquartered in Abingdon, Va. The average estimate of analysts polled by
is for the coal producer to post a profit of 28 cents a share on revenue of $974.6 million for its fiscal fourth quarter when it reports its results on Feb. 9. Alpha Natural's stock is up 26% over the past 52 weeks, hitting a 52-week high of $68.05 on Jan. 12.
Written by Michael Baron in New York.
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