The West Virginia Supreme Court of Appeals today rejected a bid by Massey Energy investors to block the $7.1 billion takeover of the largest coal miner in Central Appalachia by rival Alpha Natural Resources. Massey shareholders are schedule to vote on the deal, which was announced in January, on Wednesday.
''This court does not have jurisdiction to award an injunction in this matter,'' the court said in a five-page order, Bloomberg News reported. Massey (MEE) allege the company gave Alpha Natural preferential treatment in the bidding process and that Massey management moved to sell the company to avoid personal liability for the April 2010 blast at the company's Upper Big Branch mine in West Virginia.
Lawyers for the California State Teachers' Retirement System, one of the plaintiffs, believe Virginia-based Alpha Natural (ANR) should pay as much as $1.5 billion more for Massey, according to Bloomberg.
Last week, Massey court documents revealed that the company thought the federal government, including President Obama himself, conspired to destroy the company following the Upper Big Branch explosion, which killed 29 workers and was the worst accident at a U.S. coal mine in nearly four decades.