Massey Energy Co., owner of West Virginia, where my 29 people who died in April, said the CEO was responsible for a review of strategic alternatives "to increase shareholder value," could lead a process of selling the company.
A special committee of the Council "to advise and report to the directors of the effort," said Richmond, Virginia-based Massey in a statement today. Perella Weinberg Partners LP was retained as financial advisor and Cravath Swaine and Moore LLP acted as legal advisor to the committee, the company said.
The manufacturer has received several offers with detailed specific deals with companies such as Alpha Natural Resources Inc., together with approaches from several other companies, including ArcelorMittal SA, according to two people familiar with the matter. Arch Coal Inc., Consol Energy Inc. and also expressed interest in acquiring Massey said that these people who identified rejected because the matter is private.
Massey, the largest coal producer in Central Appalachia has 2.8 billion tons of metallurgical coal reserves of 1.3 billion will be used to produce steel. Benchmark prices for the type of coal has increased to $ 209 per tonne ends for the three-month contract on 31 December 1962 percent higher than a year earlier driven by demand from China and India.
Valuables
"Nothing would be on consolidation before us was not surprised," said Jeremy Sussman, an analyst at Brean Murray Carret and Co. in New York. "Metallurgical coal is a structural short product, which is maintained at closer."
Massey climbed $ 1.51, or 3.1 percent, to $ 50.52 today in New York Stock Exchange composite trading, after rising as high as $ 52.20. The shares have risen 20 percent this year.
Arch Coal Inc. did not return messages. Representatives of ArcelorMittal, Alpha and Consol refused comment. The deal says Massey plans to form a special committee this morning.
Massey "no definitive timetable for its review and determined it can not be guaranteed that this process will lead to the adoption or termination of a transaction," the company said.
The coal producer who has worked for 94 years, said it was not for all developments during the process plan known until the Board approves a transaction or ends the review.
The company will likely decide sometime in the first quarter or she has an offer worth, said a person familiar with the matter. It is time for the holidays and for the bidders due diligence, so that the person said to take to perform.
Alpha Fit
Perella Weinberg said the board this weekend that Alpha made the most sense as a buyer, indicating synergy between the commercial producers. Alpha offered a $ 55 per share for the Massey earlier in the year, 12 percent more than the company closing price on 19 November, after the people. This price was considered too low by the board, people said.
Walter Energy Inc., a southern Appalachian coking coal producer, offered to West 18th November Coal Corp., a Canadian mining company to buy C$3.3 billion ($3.2 billion) to improve access to goods, representing a 59 percent premium to Western Coal 20-day average price of C $ 7.23 on 18 November at the Toronto Stock Exchange.
Possible sale
While Chief Executive Officer Thurs Blankenship, 60, has misgivings about the sale of the company expressed, as the board came to a consensus on the weekend to formalize the sale process and to see was what kind of value and interest in it from outside companies , said people familiar with the matter. It is not clear how long the company running the auction, said these people.
Much of the research came earlier this year after the accident at the 5th April Upper branch near me Mont coal, West Virginia. The accident was the worst U.S. mining accident in 40 years.
The company's stock has fallen 7.6 percent since the deadly explosion after surging 30 percent this year before the accident. Massey last month reported a net loss of $ 41,400,000 for the third quarter, increasing at a lower productivity amid regulatory measures.
Coal India Ltd., the world's largest producer of coal is considering a Massey me for the first purchase of assets in the U.S., the state-owned companies to help meet the demand of power plants and steel plants, three people with direct knowledge of the matter, said this month .
Blankenship, who started his career with the company as office manager in 1982, and the Board Chairman, said last week that the merger of warrants "fully tested" at the board meeting that started yesterday at the Greenbrier Resort White Sulphur Springs, West Virginia .