Walter Energy (WLT) Ticks Higher as Market Chatter Returns (BHP) (FCX)
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Price: $17.98 -2.34%
Overall Analyst Rating:
NEUTRAL (
Up)
Dividend Yield: 2.6%
Revenue Growth %: -22.3%
Overall Analyst Rating:
NEUTRAL (
Up)Dividend Yield: 2.6%
Revenue Growth %: -22.3%
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Walter Energy (NYSE: WLT) might be the next in line for a buyout following Freeport-McMoRan's (NYSE: FCX) acquisition of McMoRan Exploration (NYSE: MMR) and Plains Exploration (NYSE: PXP) on Wednesday.
The U.K.'s DailyMail is saying that BHP Billiton (NYSE: BHP) might be interested in acquiring Walter. The DailyMail sees a bid of $55 per share coming in for the met coal giant.
Reasoning behind the chatter is that Xstrata CEO Mick Davis might be looking for a new gig following completion of Xstrata's merger with Glencore Int'l and he would be a likely candidate to replace BHP chief Marius Kloppers. Kloppers has come under criticism lately for missing out on three bids: one for Rio Tinto (NYSE: RIO), one for Rio Tinto's iron business, and a failed attempt to acquire Potash Corp. (NYSE: POT).
U.S. analysts have been saying that Walter looks undervalued following a 58 percent drop in shares this year. $55 would be a 74 percent premium to Walter's closing price of $31.66 on December 5th.
In addition to BHP, Glenstrata (the Bennifer of the mining world) might be interested in Walter following the divestiture of its 25 percent stake in Lonmin, a platinum miner.
Shares of Walter are indicated higher Thursday.
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The U.K.'s DailyMail is saying that BHP Billiton (NYSE: BHP) might be interested in acquiring Walter. The DailyMail sees a bid of $55 per share coming in for the met coal giant.
Reasoning behind the chatter is that Xstrata CEO Mick Davis might be looking for a new gig following completion of Xstrata's merger with Glencore Int'l and he would be a likely candidate to replace BHP chief Marius Kloppers. Kloppers has come under criticism lately for missing out on three bids: one for Rio Tinto (NYSE: RIO), one for Rio Tinto's iron business, and a failed attempt to acquire Potash Corp. (NYSE: POT).
U.S. analysts have been saying that Walter looks undervalued following a 58 percent drop in shares this year. $55 would be a 74 percent premium to Walter's closing price of $31.66 on December 5th.
In addition to BHP, Glenstrata (the Bennifer of the mining world) might be interested in Walter following the divestiture of its 25 percent stake in Lonmin, a platinum miner.
Shares of Walter are indicated higher Thursday.
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