Walter Energy, Inc. Surges 15% On Acquisition Rumors
Walter Energy, Inc. (NYSE: WLT) surged higher Thursday as rumors of an acquisition circulated.
According to The Guardian, “US coal giant Walter Energy was rumored to be in the sights” of BHP Billiton or Rio Tinto. BHP may be considering $5 a share for the company, more than double the current price.
In 2011, Walter Energy traded as high as $141.17, but since then its price has crashed. The company is a pure play on metallurgical coal and is subject to the cycle of commodity prices.
In recent years demand for metallurgical coal has decreased, while new mines have increased supply, according to data from the U.S. Energy Information Administration.
Walter Energy, Inc. traded at $2.14 Thursday morning, up 15.87 percent.
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