W.Va. court rejects bid to halt Massey Energy sale

Business Law

The West Virginia Supreme Court has declined to issue an order barring Massey Energy shareholders from voting on a proposed $7.1 billion sale to rival coal producer Alpha Natural Resources.

The court says in a ruling issued Tuesday it lacks jurisdiction in the case.

Three institutional investors had sought to prevent Wednesday's shareholder vote. The deal is expected to close pending approval by shareholders of the Virginia-based companies.

The investors argue that the April 5, 2010, explosion at Massey's Upper Big Branch mine that killed 29 miners and other actions damaged Massey's value.

Shareholders also sought a similar delay in a Delaware court last week. A ruling on that case is pending.

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