DOW JONES NEWSWIRES
Massey Energy Co. (MEE) said its board recommended the
struggling coal miner formally review its strategic alternatives,
without disclosing what possibilities are on the table nor giving a
timetable for the review.
Earlier this month, Chief Executive Don Blankenship said a
merger or acquisition deal was a possibility the company was
examining.
The company's "formal review of strategic alternatives to
enhance shareholder value" is part of the company's annual
examination of its strategy, Massey said in a press release Monday.
It has retained financial-services company Perella Weinberg
Partners LP and law firm Cravath, Swaine & Moore LLP to advise
a the review committee on financial and legal matters.
The company been struggling since an April 5 explosion at its
Upper Big Branch mine killed 29 workers in the U.S.'s worst mine
disaster in four decades. In second and third quarters, the company
swung to losses because of charges from the explosion in the former
and reduced production and higher costs linked to tougher
mine-safety standards in the latter.
Shares in Massey were up 2.6% at $51.85 million after hours. The
company's stock has risen 20% so far this year through the
close.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com