Walter Energy (NYSE:WLT) Receives Mixed Reaction from Western Coal (TSE:WTN) Bid

Even though Walter Energy (NYSE:WLT) shares soared Friday, there is still mixed reaction to their bid for Western Coal (TSE:WTN), and has also generated the idea they themselves may be a takeover target.

FBR said, "Shareholders woke up yesterday (Thursday) and had a mixed reaction to WLT's merger opportunity with WTN, for several reasons: (1) expectations, which some still have, of a WLT sale, not a defensive move (we do not); (2) limited understanding of WTN, or having preconceived notions, based on the past; (3) the large premium paid; and (4) the unknown financing structure...WLT is now "half-pregnant," since it now owns, or is responsible for, 20% of WTN shares and has two weeks to come to terms with Western Coal's board...We are increasing our WLT 2010/2011 EPS estimates to $7.73/$8.39 from $7.64/$7.96, primarily to reflect the income contribution (based on consensus) from the initial 9.2% stake in WTN, which WLT is acquiring from Audley Capital."

Walter Energy closed Friday at $105.91, soaring $9.05, or 9.34 percent. FBR has a price target of $98 on Walter, and maintains their "Outperform" rating on them.

Eldorado (NYSE:EGO), Agnico-Eagle (NYSE:AEM), Gammon (NYSE:GRS) Up on Gold Rebound

Eldorado Gold (NYSE:EGO), Gammon (NYSE:GRS) and Agnico-Eagle (NYSE:AEM) were all up over 2 percent today, as gold rose on disappointing earnings from some companies, along with the euro dropping early in the trading session.

The majority of gold miners were up on the day.

Eldorado topped the three as of 1:14 PM EDT, standing at $15.76, gaining $0.38, or 2.47 percent.

Agnico was at $56.57 as of 1:13PM EDT, just behind Eldorado as measured by percentages. They gained $1.31 a share, or 2.37 percent.

Even as I am writing Gammon Gold made a nice move, and are at $5.49, gaining $0.19, or 3.58 percent, as of 1:18 PM EDT.

Gold is expected to be volatile during the short term, but should rebound nicely and continue its upward move.

Goldcorp (TSE:G) Acquires Warrants and Shares from Terrane Metals (TSE:TRX)

Goldcorp Buys Warrants and Shares from Terrane Metals

Goldcorp (TSE:G) has acquired $97.6 million in shares and warrants from Terrane Metals (TSE:TRX), helping them fund the Mt. Milligan mine in British Columbia. A group of underwriters also were part of the acquisition of shares and warrants.

National Bank Financial Inc. led the group of underwriters who will acquire 63.6 million units, consisting of one common share and a half common share purchase warrant, for C$1.10 each. Goldcorp has agreed to purchase 27.3 million of the same units made up of common shares and warrants.

Construction on the mine, which has production estimates of 89 million pounds of copper and 262,100 ounces of gold annually for the first six years of mining, is scheduled to begin in July. The mine has a life-span of 22 years.

Terrane Metals is willing to sell a portion of Mt. Milligan to raise more needed capital, with the buyer getting the rights to the metal produced at the part of the project sold.