$2B Alpha Merger Would Create Coal Giant

Law360, New York (May 12, 2009, 12:00 AM EDT) -- Alpha Natural Resources Inc. said Tuesday it would buy Foundation Coal Holdings Inc. in a $2 billion, all-stock transaction that would create the third-largest coal producer in the United States.

Under the terms of the merger, Foundation stockholders will receive 1.084 shares of the new company for each share they currently own, giving them a roughly 37 percent premium. Each share of Alpha will automatically become one share of the new company.

In addition to handing out about $1.5 billion in stock, Alpha will assume $530...
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