Alpha reaffirms commitment to acquiring Foundation coal

CHARLESTON, W.Va. — Alpha Natural Resources is confirming its commitment to buy rival mine operator Foundation Coal.

Abingdon, Va.-based Alpha said Friday it strongly disagrees with Duquesne Capital Management’s opinion of the deal, an all-stock transaction worth $1.4 billion when it was announced in May. Alpha says the deal will create long-term value for shareholders.

Duquesne, which owns 8.3 percent of Alpha, says it’s voting against the deal, claiming Alpha has inflated how profitable Linthicum Heights, Md.-based Foundation will be next year, among other things.

Combined, Foundation and Alpha would be the nation’s third-largest coal producer, with mines in Pennsylvania, West Virginia, Virginia, Kentucky and Wyoming. The deal is expected to close July 31, pending approval by shareholders of both companies.