A Harbinger of the Coal Deal to Come (at Motley Fool)

Coal stocks jumped off a cliff Thursday, placing a soot-covered exclamation mark on a gut-wrenching period for commodity stocks. For one hybrid iron ore and coal producer, the climb back up the cliff is now more likely to involve a major acquisition. While hedge funds were reportedly unloading positions in droves yesterday amid this acute global credit crunch, one hedge fund sought permission to increase its stake in raw materials miner Cleveland-Cliffs (NYSE: CLF). Harbinger Capital Partners wanted shareholder approval to double its 15.6% stake in the company in order to block Cleveland's proposed acquisition of coal miner Alpha Natural Resources (NYSE: ANR). Harbinger considers Cleveland's move to acquire Alpha Natural Resources a "profound strategic mistake," suggesting that coal mining is a much riskier endeavor than... [read full story]