Consol cancels offer for CNX Gas stake

NEW YORK, March 25 (Reuters) - Coal producer Consol Energy Inc (CNX.N: Quote, Profile, Research) on Tuesday said it canceled its plan to buy the stake of CNX Gas Corp (CXG.N: Quote, Profile, Research) that its does not already own due to price demands from shareholders and market volatility.

Consol, which owned nearly 82 percent of CNX gas when it announced its plans to buy the shares in January, said it does not plan to sell its stake in the company and will continue buying CNX Gas shares from time to time.

Consol had offered 0.4425 of its shares for each CNX Gas share, which would translate to about $28.81 per share using Monday's closing price.

CNX Gas shares were trading down 3 percent, or $1.00, at $32.33 on the New York Stock Exchange at midday. (Reporting by Michael Erman; Editing by Brian Moss)