coking coal m&a - walter energy next in line?

Now that Macarthur is off the Australian scene...US listed Walter Energy has rocketed on rumours that Anglo American is considering a bid.

Coal (especially coking coal) seems to be the best commodity to be in, even as commodity markets globally have been set back.

Just adds that bit of extra value to tiny CEO

http://newsletters.creamermedia.co.za/servlet/link/18/46587/9605540/623170

Walter Energy shares up on report of possible bid

By: Reuters
7th September 2011

Shares of Walter Energy Inc jumped 28 percent Wednesday morning after a report that Anglo American was weighing a bid for the metallurgical coal miner.

The Times of London newspaper said in its market report on Wednesday that there were rumors of a bid for Walter by diversified mining group Anglo American.

The report said Anglo was said to be weighing an offer for Walter, pitched at $120 a share, and would discuss the matter over the weekend.

However, analysts at London broker Liberum Capital called such an offer "unlikely," citing Anglo's minimal presence in US coal markets.

Walter's stock rose 28 percent to $95.95 in morning trading on the New York Stock Exchange.

Birmingham, Alabama-based Walter declined to discuss the newspaper story. "We don't comment on rumors or speculation," Walter spokesman Michael Monahan said. "That's what it is at this point."

Anglo American was not immediately available for a comment.

Shares of Walter, which mines coal used in the steelmaking process, fell sharply in August after the company reported a disappointing second-quarter profit and lowered production estimates for the rest of the year.