Massey may look to buy another coal company: report

BANGALORE (BestGrowthStock) – U.S. coal miner Massey Energy Co (MEE.N: ), which was rocked by a mine explosion in West Virginia early this year, will consider buying a coal company as an alternative to its ongoing takeover talks, the Wall Street Journal said.

The departure of Massey Chief Executive Don Blankenship on Friday, has made it more likely that the company will opt for an acquisition instead of a sale, the Journal said, citing people familiar with the matter.

Blankenship, one of the most powerful U.S. coal industry leaders, said on Friday he would retire at the end of December, eight months after 29 miners died at one of Massey’s mines in West Virginia.

Massey, based in Richmond, Virginia, has been under increasing scrutiny by federal mine safety regulators since the April 5 explosion, the deadliest U.S. coal mining disaster in 40 years.

The company’s financial results have suffered since April, and Massey has said it was weighing strategic options, sparking market speculation that one of its peers may buy it.

Shane Harvey, Massey’s vice president and general counsel, said in a statement to the Journal that a recently formed board committee “will continue to consider all the strategic options available to the company.”

Massey could not immediately be reached for comment by Reuters outside regular U.S. business hours.

(Reporting by Sakthi Prasad in Bangalore; Editing by Dhara Ranasinghe)

Massey may look to buy another coal company: report