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Strategies & Market Trends : Speculating in Takeover Targets -- Ignore unavailable to you. Want to Upgrade?

To: richardred who wrote (2464)10/25/2010 3:22:21 PM
From: Brasco One  Read Replies (1) | Respond to of 6272
$62 price tag would be very nice for MEE!!

To: richardred who wrote (2464)11/14/2010 10:29:03 PM
From: richardred  Read Replies (1) | Respond to of 6272
Steel Giant Said to Be Considering Massey Bid
Published: November 14, 2010

Massey Energy, the beleaguered coal mining company that has attracted takeover interest, has now garnered the attention of the global steelmaker ArcelorMittal, according to a person briefed on the matter.

Massey has suffered several prominent disasters in recent years, including an explosion in April at the company’s Upper Big Branch mine in West Virginia. It has already received a takeover offer from its bigger rival Alpha Natural Resources, this person said. Arch Coal, also a coal producer, has expressed interest.

Any deal is far from imminent, this person said, and Massey’s board may elect not to pursue a merger at a meeting this month. The person spoke only on the condition of anonymity.

A takeover and new management could help ease some of the company’s problems, notably its tarnished safety record, analysts have said. Its chief executive, Don L. Blankenship, has been a magnet for controversy in the wake of Massey’s problems, dogged by his public opposition to several environmental regulations and his high profile in West Virginia politics.

The company reported a $41.4 million loss in its third quarter, which included a $14.5 million accounting charge related to the Upper Big Branch mine explosion, in which 29 miners were killed.

Still, the company has been buoyed by sales to developing countries, notably China and its big demand for steel.

ArcelorMittal, the product of a 2006 merger between Arcelor and Mittal Steel, first expressed interest in acquiring Massey about six weeks ago, the person briefed on the matter said. The company could see benefits from acquiring a major supplier of coal for its steel operations.

Representatives for ArcelorMittal and Massey were not immediately available for comment.

News of ArcelorMittal’s interest in Massey was first reported on Sunday by The Wall Street Journal online.