US pension funds try to block Massey-Alpha coal merger « Mining Blog

US pension funds try to block Massey-Alpha coal merger

26. May 2011,

Massey Coal – surely the single most destructive coal mining company in the US – is trying to sell itself to rival miner, Alpha Resources .
(Not that Alpha is much more responsible than Massey: it was fined US$4 million only last March for violating clean water regulations:
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Now, some state pension funds – including New Jersey Building Laborers
Statewide Pension Fund – have filed a law suit, in an attempt to block
the merger deal, in order to wring further compensation out of Massey
through filing a class action suit.

The funds claim the transaction was priced $1.5 billion cheaper than
it should have been in view of Massey?s safety record.

According to Reuters [26 May 2011] the law suit has revealed Massey’s belief that
president Obama himself was seeking to “bring down” Massey. Why this (even if it’s true) should should have any bearing on the company’s appalling behaviour
(rather than its paranoia) is anyone’s guess…

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