Shares of Walter Energy (WLT) are soaring more than 20% this morning, fueled by a report that British miner Anglo American is weighing a takeover offer for the coal maker that would carry a hefty premium of at least 60%.
According to the London Times, Anglo American, which is headquartered in London and mines coal in Australia, South Africa and Colombia, already has financing lined up for the bid.
Anglo American is considering pulling the trigger on a $120-a-share for Birmingham, Ala.-based Walter Energy, which is a producer and exporter of metallurgical coal and other products, the paper reported. At $120, the bid would translate to a 60% premium on Walter Energy’s Tuesday closing price of $74.99.
WLT is currently up 21 to 96.01...if this story is true, we are looking at another 24 points from here...
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