Today’s announcement of a merger between Alpha Natural Resources, Inc. (NYSE: ANR) and Foundation Coal Holdings, Inc. (NYSE: FCL) creates the third-largest coal producer in the US. The all-stock deal is worth about $2 billion including $530 million in Foundation debt, with Alpha issuing 1.084 shares for each Foundation share at a value of $32.73/share, a 37% premium to Foundation’s closing price on May 8, 2009.
Foundation shareholders will own about 41% of the new company, while Alpha shareholders will own 59%. The merged company, which will retain the Alpha name, will have a market cap of about $3.5 billion and reserves of more than 2.3 billion tons of coal.
Full Story: http://247wallst.com/2009/05/12/coal-fields-merger-creates-big-player-anr-fcl-clf-kol/