Proxy advisory firms back acquisition of Alpha Natural by Cliffs Natural Resources

By Lisa Kerner

Charlotte, N.C., Nov. 7 - Proxy Governance, Inc. and Egan-Jones Proxy Services recommended that Alpha Natural Resources, Inc. shareholders vote in favor of the company's merger with Cliffs Natural Resources Inc.

Alpha Natural's board also recommends that stockholders approve the deal at the special meeting on Nov. 21, according to a company news release.

The merger agreement gives Alpha Natural shareholders 0.95 shares of Cliffs Natural common stock and $22.23 in cash per share of Alpha Natural common stock.

Alpha Natural said the offer is a 90% premium over the closing price of its stock on Nov. 6.

Cliffs Natural shareholders will vote on the company's proposed $10 billion cash-and-stock buyout of Alpha Natural at a special meeting on Dec. 19.

The Delaware Chancery Court approved a stipulation that lets Cliffs Natural hold its special meeting on Dec. 19 rather than on Nov. 21 as previously announced.

Cliffs Natural said it agreed not to postpone or adjourn the special meeting without the permission of Alpha Natural or the court.

Record date for Cliffs Natural's Dec. 19 meeting is Nov. 19, a Cliffs Natural news release said.

Alpha Natural Resources, located in Abingdon, Va., supplies Appalachian coal to the steel industry, electric utilities and other industries.

Cliffs Natural Resources, a mining company, produces iron ore pellets in North America and supplies metallurgical coal to the steelmaking industry. The company is based in Cleveland.

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