Wednesday, November 17, 2010

Coal: Massey Energy Admits to Takeover Bids (MEE; ACI; ANR)

The stock is up $1.24 at $47.42.
Worst kept secret of the month.
This won't be the last coal deal, the stuff is in pretty high demand.
From DealBook:

The chief executive of Massey Energy, Don L. Blankenship, acknowledged for the first time on Wednesday that directors of the mining company were seriously considering takeover bids.

Massey has been battered after an explosion last April at its Upper Big Branch mine in West Virginia killed 29 miners. Stiffening regulatory oversight has reduced Massey’s production and increased its expenses, and the company is facing several state and federal investigations into both the accident and some of its other operations.

Reports of various potential takeover bids have been swirling for weeks, driving up Massey’s share price. Alpha Natural Resources, a major mining company, has already made a bid for the company, according to a person with direct knowledge of the talks who was not authorized to speak public....MORE