Walter Energy Inc WLT

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Walter Jumps on Speculation of Takeover by Anglo American, BHP
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By Sonja Elmquist - Oct 13, 2011 11:00 AM ET


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Walter Energy Inc. (WLT), a U.S. producer of steel-making coal, jumped as much as 5.8 percent in New York trading after the U.K.’s Independent reported that Anglo American Plc (AAL) and BHP Billiton Ltd. may bid for the company.
Walter rose 3.2 percent to $68.99 at 10:34 a.m. New York time. The potential bidders may be advised by JPMorgan Chase & Co. and Goldman Sachs Group Inc., the London-based newspaper said, without citing anyone. Brazil’s Vale SA (VALE3) and Cia. Siderurgica Nacional SA may also be considering a bid, the newspaper said.
Walter, based in Birmingham, Alabama, acquired Vancouver- based Western Coal Corp. in April for C$5.3 billion, ($5.2 billion). Demand from steelmakers in China and flood-related supply disruptions in Australia have driven prices for the raw material to record highs. Low-volatility coking coal traded at $270 a ton, Knoxville, Tennessee-based Energy Publishing said in a report last week.
Telephone and e-mail messages left for Susan Knight, a Walter spokeswoman, weren’t immediately returned.
“We do not comment on market speculation,” Emily Blyth, a spokeswoman for Anglo American, said today in an e-mailed response to questions. Ruban Yogarajah, a London-based spokesman for BHP, declined to comment when contacted by phone.
To contact the reporter on this story: Sonja Elmquist in New York [e-mail].
To contact the editor responsible for this story: Simon Casey [e-mail].
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