Coal miner Massey's CEO says seeking acquisitions

Wed Nov 17, 2010 8:10pm GMT
 

* Says actively looking to make acquisitions

* No comment on India, Alpha, ArcelorMittal interest

* Stock rises 2.7 percent

By Steve James

NEW YORK, Nov 17 (Reuters) - Massey Energy Co MEE.N, thought to be a takeover target after revealing it was mulling strategic options, is looking to make acquisitions of its own, the coal mining company's chief executive said on Wednesday.

"There will be a separate focus on M&A (mergers and acquisitions) and joint venture opportunities," Don Blankenship told a Dahlman Rose & Co mining industry conference.

During a presentation to investors, Blankenship said the U.S. coal industry is ripe for consolidation, especially in Central Appalachia, where producers are facing permitting, capital and liquidity constraints .

"Massey is prepared to use a portion of cash reserves for acquisitions," he said.

The comments came a few days after India's state-run Coal India Ltd (COAL.BO: Quote) said it was in talks to buy mines from Massey and another U.S. coal producer, Peabody Energy Corp (BTU.N: Quote).   Continued...

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