Jefferies Discusses Alpha Natural, Massey Merger (MEE, ANR)

Jefferies & Co. is out with a note discussing the Alpha Natural Resources ANR-Massey Energy MEE merger. In a note to clients, Jefferies writes, "On Saturday afternoon (29 Jan), Alpha Natural Resources and Massey Energy confirmed a negotiated transaction that values Massey Energy at $69.33/share. Both Boards support the deal, which could close by mid-year. We believe the price appears fair given our $70/share price target for Massey Energy (MEE, $57.23, Buy)." Shares of ANR are down $4.49 to $53.39 after the news, while shares of Massey are up $5.50 to $62.73, a gain of 9.6%.