Alpha Natural Acquires Foundation Coal

123jump.com Staff
12 May, 2009
New York City

Two coal miners merge to form the third largest coal company with mines in some of the coal rich areas of the U.S. The deal will strengthen both companies in negotiating with utilities and steel companies. Foundation Coal surges after the Alpha pays 37% premium.

[R]1:15PM New York – General Motors Corporation led the decliners in the S&P 500 Index of 17.3%. Air Transport Services Group Inc reports strong first quarter earnings. CDC Corporation turns to profit in first quarter. MBIA Inc posts first quarter profit after 5 straight losses.[/R]

Of the stocks in S&P 500 index, 232 increased, 257 declined and 11 were unchanged.

General Motors Corporation led the decliners in the S&P 500 index of 17.3% followed by losses in Anadarko Petroleum Corporation of 7.4%, in Ford Motor Company of 7.4%, in International Paper Company of 6.3% and in Capital One Financial Corporation of 5.1%.

Massey Energy Company led gainers in the S&P 500 index with a rise of 6.1% followed by gains in Fluor Corporation of 4.8%, in Genworth Financial, Inc of 4.2% and Newell Rubbermaid Inc of 4.1%.

Other Movers

Air Transport Services Group Inc ((ATSG)) added 13.2% or 0.090 cents to $0.770 after the cargo carrier said first quarter revenues fell 27% to $280.6 million from $382.1 million a year ago. Net income in the quarter rose 192% to $11.1 million or 18 cents per diluted share compared to net income of $3.8 million or 6 cents per share a year ago.

Alpha Natural Resources, Inc and Foundation Coal Holdings, Inc announced a merger agreement to create the third largest coal miner in the country.

The merger values Foundation Coal at $2 billion including the $530 million in net debt and after the deal Alpha shareholders will own 59% and Foundation Coal shareholders will control 41% of the newly merged company that will operate under the name Alpha Natural Resources.

Foundation Coal Holdings, Inc ((FCL)) surged 17% or $3.95 to $27.19, Alpha Natural Resources ((ANR)) declined 9.3% or $2.70 to $26.15 and Massey Energy Company ((MEE)) fell 2.4% to $20.03. Consol Energy Inc declined 2.5%.

Anadarko Petroleum Corporation ((APC)) fell 7.3% or $3.57 to $45.27 after the second-largest independent U.S. oil and natural gas producer announced a public offering of 30 million shares of its common stock and granted the underwriters a 30-day option to purchase up to 4.5 million additional shares of its common stock.

Bowne & Co., Inc ((BNE)) rose 3.0% or 15 cents to $6.00 after the provider of shareholder and marketing communications services said first quarter revenues fell 19% to $169.1 million from $208.8 million a year ago. Net loss in the quarter was $2.0 million or 7 cents per diluted share compared to net income of $0.7 million or 3 cents per share a year ago.

CDC Corporation ((CHINA)) surged 4.0% or 6 cents to $1.53 after the global enterprise software and new media company said first quarter revenues fell 20% to $79.01 million from $98.2 million a year ago. Net income in the quarter was $7.87 million or 7 cents per diluted share compared to net loss of $11.9 million or 7 cents per share a year ago.

Ctrip.com International, Ltd ((CTRP)) climbed 14.4% or $4.74 to $37.55 after the travel service provider in China said first quarter revenues rose 18% to $401 million from $340.5 million a year ago. Net income in the quarter rose 22.5% to $121 million or 52 cents per diluted share compared to net income of $98.8 million or $2.86 per share a year ago.

Ciena Corporation ((CIEN)) lost 6.4% or 69 cents to $10.04 after the maker of network equipment was downgraded from “market perform” to “market underperform” at JMP Securities.

Fluor Corporation ((FLR)) jumped 3.6% or $1.58 to $44.79 after the engineering and construction giant said first quarter revenues rose 21% to $5.8 billion from $4.8 billion a year ago. Net income in the quarter rose 50% to $205 million or $1.12 per diluted share compared to net income of $137 million or 74 cents per share a year ago.

Fossil, Inc ((FOSL)) rose 15.2% or $3.01 to $22.75 after the global design, marketing and distribution company reported first quarter revenues fell 9.3% to $323.0 million from $356.2 million a year ago. Net income in the quarter fell 42.7% to $17.3 million or 26 cents per diluted share compared to net income of $30.2 million or 43 cents per share a year ago.

Ford Motor Company ((F)) dropped 12.0% or 73 cents to $5.35 after the second-largest U.S. automaker filed to sell 300 million shares as it looks to fund a portion of the retiree health-care benefits it is required to make under a pact with the United Auto Workers with cash instead of stock. The company also indicated that it will not pay dividend in the foreseeable future.

The Great Atlantic & Pacific Tea Company, Inc ((GAP)) dropped 17.3% or $1.16 to $5.53 after the grocery retailer reported fourth quarter revenues rose 4.5% to $2.3 billion from $2.2 billion a year ago. Net loss in the quarter was $111 million or $4.15 per diluted share compared to net loss of $61.5 million or $1.73 per share a year ago.

MBIA Inc ((MBI)) surged 12.7% or 88 cents to $7.85 the engaged in providing financial guarantees business reported first quarter revenues were $1.93 billion from loss of $2.94 billion a year ago. Net income in the quarter was $696.7 million or $3.34 per diluted share compared to net loss of $2.4 billion or $12.92 per share a year ago.

Nautilus, Inc ((NLS)) lost 11.0% or 0.120 cents to $0.970 after the global fitness products company said first quarter revenues fell 44.4% to $72.1 million from $129.6 million a year ago. Net loss in the quarter was $13.8 million or 45 cents per diluted share compared to net loss of $6.4 million or 20 cents per share a year ago.

Nissan Motor Co., Ltd ((NSANY)) added 3.6% or 38 cents to $10.72 after the automaker reported full-year sales fell 22% to ¥8.44 trillion from ¥10.8 trillion a year ago. Net loss was ¥233.7 billion compared to net income of ¥482.3 billion a year ago.

Nuance Communications, Inc ((NUAN)) increased 3.5% or 46 cents to $13.54 after the speech and imaging software maker said second quarter revenues rose 13% to $229.1 million from $203.3 million a year ago. Net income in the quarter was $7.1 million or 3 cents per diluted share compared to net loss of $26.8 million or 13 cents per share a year ago.

Raser Technologies, Inc ((RZ)) lost 4.3% or 14 cents to $3.97, an energy technology companies reported first quarter no revenues from $0.1 million a year ago. Net loss in the quarter was $6.7 million or 10 cents per diluted share compared to net loss of $5.4 billion or 10 cents per share a year ago.

Stifel Financial Corp ((SF)) declined 2.5% or $1.30 to $50.48 after the financial services company said first quarter revenues rose 4% to $220 million from $211.5 million a year ago. Net income in the quarter fell 8% to $13.2 million or 44 cents per diluted share compared to net income of $14.3 million or 53 cents per share a year ago.

STEC, Inc ((STEC)) added 27.5% or $2.85 to $13.24 after the maker of memory chips said its first-quarter adjusted earnings from continuing operations totaled 17 cents per share.

Winn-Dixie Stores, Inc ((WINN)) jumped 20.4% or $2.35 to $13.82 after the grocery store chain reported 10% gain in profit for the fiscal third quarter and raised its adjusted guidance for the year. The fall of Easter lowered the revenue compared to the quarter a year ago.