DJ Walter Energy Buyout Rumors Unfounded -CreditSights-- Market Talk
06/10/2014 15:01 MF-DJ
9:01 EDT - Walter Energy has takeover costs that are so high that recent takeover rumors must be unfounded, research firm CreditSights says. A takeover would cost an extra $1.9B, largely from unfunded retirement liabilities and options due to bondholders in case of an ownership change, the firm says. At Friday's $2.06/share closing price, WLT has a market capitalization of only $135.6M.
If BHP Billiton were to buy the company, it would make sense to wait and do it through bankruptcy, CreditSights says. It would give buyers more power to restructure labor costs, remove debt or buy assets, it says. (
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