Alpha Natural committed to merger despite shareholder's objection

By Lisa Kerner

Charlotte, N.C., July 21 - Alpha Natural Resources, Inc. said that while it is disappointed with shareholder Duquesne Capital Management LLC's reaction to the company's proposed merger with Foundation Coal Holdings, Inc., Alpha believes the merger "makes excellent strategic sense."

On Monday, Duquesne Capital announced it planned to vote against the proposed merger at Alpha's special meeting on July 31. The shareholder has an 8.31% stake in Alpha.

According to Alpha, the leading four proxy advisory firms have recommended that the company's shareholders vote in favor of the merger.

In May, Alpha and Foundation Coal announced they agreed to combine in an all-stock transaction valued at $2 billion to form the third-largest coal producer in the United States.

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

Alpha, 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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