Last week, I noted that rating agency Standard
and Poors had upgraded Massey Energy from "hold" to a "buy."
Massey's the company that owns the mine where
29 miners were killed in an explosion recently.
Now we find out that Standard and Poors were right:
Massey's prospects are only going up -- in fact, they're on a shopping
Perhaps they're just taking George W. Bush's advice
from 2001 to heart: the best way to deal with a tragedy is to go shopping.
Anyway, the Wall Street Journal reports that
Massey completed a purchase of U.S. coal producer Cumberland Resources
for $640 million in cash and 6.5 million of its
While Massey might be a particularly egregious
union-buster and regular safety violator, they're hardly that far outside
for their industry. They're serving their investors
and the politicians who benefit from their largesse, and they're taking
of opportunity -- the purchase of Cumberland
was said to be part of a focus on underground mining for Massey in the
expected federal regulations on surface mining.
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