Massey More Likely To Pursue Acquisitions

Massey Energy MEE, the largest coal producer in the Central Appalachia region, appears more likely to make an acquisition of its own, rather than sell itself following the departure of CEO Don Blankenship. When Massey's board met last month, they approved a plan for the company to look for a buyer, and press reports had previously identified Alpha Natural Resources ANR and Arcelor Mittal MT, the world's largest steel producer, as two companies that were interested in Massey. Massey could attempt a reverse merger with International Coal ICO or Patriot Coal PCX, the Wall Street Journal reported citing FBR Capital Markets. Additional takeover targets for Massey were not mentioned. Arch Coal ACI and Consol Energy CNX have also been rumored to be interested in Virginia-based Massey. A sale of Massey may be difficult due to the companies unknown liabilities tied to the Upper Big Branch mine explosion in April where 29 workers perished in the worst disaster at a U.S. coal mine in four decades.