Anglo Not Likely to Bid for U.S. Coal Producer Walter Energy, Liberum Says
Anglo American Plc (AAL), a miner of coal in Australia, South Africa and Colombia, is unlikely to make an offer for U.S.-based Walter Energy Inc. (WLT) mainly because of the location of its reserves, Liberum Capital Ltd. said.
“Anglo has negligible presence in U.S. coal markets, plus landlocked U.S. coal is less exposed to export seaborne markets,” London-based Liberum said today in a note. The London-based Times newspaper reported earlier that Anglo may be weighing an offer.
Walter Energy has slumped 41 percent in New York trading this year amid management turmoil and disappointing earnings. Investor Audley Capital Advisors LLP said in July the southern Appalachia producer of steelmaking coal should explore a sale following Chief Executive Officer Keith Calder’s resignation after three months on the job.
Anglo may be considering a bid at $120 a share, the Times said in its daily market report, without saying where it got the information. The London-based miner could increase an offer to $150 if needed, the newspaper said, adding that BHP Billiton Ltd. (BHP) may also be interested in Walter.
Anglo declined to comment in an e-mail today. Kelly Quirke, a spokeswoman for Melbourne-based BHP, also declined to comment.
To contact the reporter on this story: Carli Lourens in Johannesburg at email@example.com
To contact the editor responsible for this story: John Viljoen at firstname.lastname@example.org