According to national news outlets, including The Wall Street Journal, sources familiar with the matter said Arcelor had begun preliminary explorations a few months ago. Its investigation is in the early stages and no deal is imminent.
Arcelor did not release public comment and Massey continues to be quiet on merger and acquisition talks.
Word of the latest potential suitor for Massey comes amid reports that Coal India and Alpha Natural Resources have also shown interest, with Alpha submitting an informal offer to Massey earlier this month. Arch Coal and Consol Energy have also been mentioned in reports.
Both Arch and Alpha told ILN last week that they did not comment on market rumors, but Consol told WSJ in a recent interview that major coal companies with an interest in the central Appalachian region – where Massey’s operations are concentrated – would have to consider picking up the producer.
"If Massey is ever in a position where they're for sale, obviously the big coal companies are going to look at it," Consol chief executive Brett Harvey said.
"We're all natural acquirers. The real question is in any deal there's got to be a willing seller and it's not clear that they're there yet."
Coal India reportedly confirmed its talks with Massey for the purchase of a stake in the company late last week.
Chairman Partha S Bhattacharyya confirmed activity to the Associated Press via the Economic Times.
"We are talking to Massey, but not for the whole company,” he said.
“Some proposal is going on with the company. They expressed interest in offering certain mines to us and we are looking at that."
Coal India held an initial public offering and began trading November 4. It raised a record $US3.4 billion in India’s largest IPO.
When asked by the AP if the company would spend more than what was set aside for a particularly attractive asset, Bhattacharyya said it would.
"If necessary, we will. We are flexible and we have all the money."
Meanwhile, Massey is planning a board of directors meeting next week to decide whether or not to put itself up for sale, Bloomberg reported Monday afternoon.
Three anonymous sources told the news service that the meeting, set for November 21-23 and classified as a regular annual review, would focus on the company’s options and whether it should formally commence a sale process; board members have not yet reached a decision, the group said.
Massey has 47 mines in southern West Virginia, eastern Kentucky, southwest Virginia and Tennessee and has 2.3 billion tons of proven and probable coal reserves. About 1.3Mt of that is metallurgical.
