The Associated Press February 8, 2011, 7:42AM ET

Baltimore law firm sues over Massey-Alpha deal

A Baltimore law firm says it's suing over Alpha Natural Resources' proposed $7.1 billion takeover of rival coal mine operator Massey Energy Co.

The lawsuit announced Monday by Brower Piven is the third challenging the deal filed in U.S. District Court for the Eastern District of Virginia.

The suits seek class-action status for Massey shareholders.

Brower Piven claims the proposed price of 1.025 shares of Alpha stock and $10 cash for each Massey share is unfair. The price works out to $69.33, which the lawsuit complains is a "mere" 16 percent over Massey's price Jan. 12.

The offer represents a 21 percent premium over Massey's closing share price the day before the deal was announced.

Both companies declined to comment.


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