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BUSINESS
Cliffs, Alpha call off big mining merger
CHARLESTON -- Cliffs Natural Resources' proposed $2.7 billion takeover of coal producer Alpha Natural Resources has been called off, the companies said Monday.
Terminating the deal is in the best interest of shareholders due to the faltering U.S. economy, uncertainty in the steel industry and other factors, the companies said in a joint news release. Cliffs agreed to pay Alpha a $70 million breakup fee. In turn, Alpha agreed to drop a lawsuit filed against Cliffs for unilaterally delaying a shareholder vote on the proposed acquisition.
Alpha operates 57 mines in Virginia, Pennsylvania, West Virginia and Kentucky.
