Early Briefing: Foundation Coal to Be Bought
This morning, Foundation Coal announced that it would be bought by Abingdon, Va.-based Alpha Natural for about $1.4 billion. Shares were up by about a third at the start of this morning's trading.
Alpha shareholders will own about 60 percent of the company, which would be the third-largest U.S. coal producer, with 59 mines and combined reserves of more than 2.3 billion tons of coal.
Linthicum Heights-based Foundation last week reported a first-quarter loss but said it expected to ship more coal this year than last.
The Obama administration has clarified what it expects the takeover of Fannie Mae and Freddie Mac to cost taxpayers: $171.1 billion.
Budget details released by the administration yesterday project that the companies are likely to need $92.2 billion more to cover losses on mortgage-related investments. The administration didn't give a timetable for this taxpayer assistance but the spokesman for the Office of Management and Budget said it is anticipated sometime before Sept. 30, 2011.
The District will name the 700 block of 10th Street NW "Bud Doggett Way" in a ceremony Friday to honor the longtime businessman and philanthropist, who died in August at age 87. L.B. Doggett Jr., a local parking mogul, real estate developer and banker, had strong ties to 10th Street: His mother owned a restaurant there, and he opened the first aboveground parking garage on the street. Doggett also founded and funded Heroes Inc., a nonprofit group that assists the families of law enforcement officers and firefighters who die lost their lives in the line of duty.
The event begins at 11:30 a.m. Mayor Adrian M. Fenty (D), other public officials and Doggett's wife, Cherrie, will speak.
The Greenbrier luxury resort in West Virginia asked a judge to dismiss its Chapter 11 bankruptcy case. Greenbrier Hotel Corp. sought protection in March to facilitate a sale of the resort. "That purpose has now been achieved through a stock transaction outside the purview of the Bankruptcy Court," and the case should be dismissed, Greenbrier said in court papers filed in U.S. Bankruptcy Court in Richmond.
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