Walter Energy CEO Resigning Signals 60% Takeover Gain: Real M&A

Walter Energy Inc.’s shareholders, who lost almost $2 billion in three months on management turmoil and disappointing earnings, may still be rewarded with a $4 billion windfall if the coal producer is acquired.

Investor Audley Capital Advisors LLP said this week 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. Walter Energy would fetch as much as $192 a share, or a 60 percent premium to yesterday’s close, based on the median earnings multiple paid in coal deals since 1998, according to data compiled by Bloomberg.