Massey Energy continues to review strategic alternatives
- November 23, 2010
The board of directors at Massey Energy has directed the company to engage in a formal review of strategic alternatives to enhance shareholder value, the company announced Tuesday.
The Richmond-based coal mining company has retained Perella Weinberg Partners LP and Cravath, Swaine & Moore LLP as financial and legal advisers to assist the board in its review.
Massey said in a statement that it has not set a timetable for completion of its evaluation, and there is no assurance that the process will lead to the approval or completion of any transaction, such as the company’s sale.
Following an April explosion at Massey’s Upper Big Branch mine in West Virginia that killed 29 miners, the company has suffered two successive quarterly losses as federal mining regulators investigate the accident. The company’s safety record and CEO Don Blankenship have been under fire. At the company’s annual meeting earlier this year in Richmond, shareholders and union members demonstrated outside, and some called for Blankenship to be fired.
At a mining conference last week, Blankenship said Massey was looking at a merger and acquisition as a possibility. There has been speculation that Abingdon-based Alpha Natural Resources, the nation’s fourth largest coal producer, may make a bid for Massey, although the company has refused to comment.