Duquesne buys 8.31% stake in Alpha Natural Resources, expresses concern about Foundation Coal deal

By Angela McDaniels

Tacoma, Wash., July 16 - Alpha Natural Resources, Inc. investors led by Duquesne Capital Management, LLC reported beneficial ownership of an initial 8.31% stake in the company after a series of buy and sell transactions.

The investors purchased a net 5,927,300 shares in the transactions, which occurred between May 4 and July 7 at prices from $23.98 to $31.60 per share.

The group has concerns about the proposed merger between Alpha Natural Resources and Foundation Coal Holdings, Inc. and is evaluating its position with respect to the deal, according to a schedule 13D filing with the Securities and Exchange Commission.

As previously reported, Foundation Coal stockholders will receive 1.084 shares of the combined company for each share of Foundation Coal, and each Alpha Natural Resources share will automatically become one share of the combined company.

The merger was announced May 12.

Shareholders of both companies will vote on the merger at special meetings on July 31. The companies expect the merger to close shortly after the meetings.

Alpha Natural Resources, located in Abingdon, Va., supplies Appalachian coal to the steel industry, electric utilities and other industries.

Foundation Coal is a Linthicum Heights, Md.-based coal producer.

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