Alpha Natural goes to court, wants Cliffs Natural Resources shareholders to vote as planned on Nov. 21

By Lisa Kerner

Charlotte, N.C., Nov. 3 - Alpha Natural Resources, Inc. filed an action in the Delaware Court of Chancery to require Cliffs Natural Resources Inc. (formerly, Cleveland-Cliffs Inc.) to hold its shareholders meeting as scheduled on Nov. 21.

Cliffs said it rescheduled its special meeting to Dec. 19 to allow shareholders time to consider new information on the financial benefits of the pending transaction.

The record date for the meeting is Nov. 19, a Cliffs news release said.

At the special meeting, Cliffs shareholders will be asked to approve the company's $10 billion cash-and-stock buyout of Alpha, an Alpha news release said.

Alpha's lawsuit, Cliffs said, has no merit, and the company plans to "vigorously defend" the action.

Cliffs said it now believes the Alpha acquisition will be "significantly more accretive to 2009 earnings per diluted share" due to changes in the economic environment and differing 2009 market conditions for iron ore and metallurgical coal.

According to Alpha, its shareholders are urged to vote in favor of the transaction at the company's special meeting, set for Nov. 21.

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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