SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 22, 1999
Arch Coal, Inc.
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(Exact name of registrant as specified in its charter)
Delaware 1-13105 43-0921172
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(State or other jurisdiction (Commission File (I.R.S. Employer
of incorporation Number) Identification No.)
CityPlace One, Suite 300, St. Louis, Missouri 63141
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(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (314) 994-2700
Page 1 of 4 pages.
Exhibit Index begins on page 4.
Item 5. Other Events.
On June 22, 1999, Ashland Inc. ("Ashland"), which owns approximately 58% of
the shares outstanding of Arch Coal, Inc. (the "Company"), announced that it was
exploring strategic alternatives for its investment in the Company. A copy of
the Company's press release dated June 22, 1999, commenting on Ashland's
announcement is attached hereto and incorporated herein by reference in its
entirety.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) The following Exhibit is filed with this Current Report on Form 8-K:
Exhibit No. Description
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99 Press Release dated as of June 22, 1999
Page 2 of 4 pages.
Exhibit Index begins on page 4.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: June 25, 1999 ARCH COAL, INC.
By: /s/ Jeffry N. Quinn
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Jeffry N. Quinn
Senior Vice President -
Law & Human Resources,
Secretary and General Counsel
Page 3 of 4 pages.
Exhibit Index begins on page 4.
EXHIBIT INDEX
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Exhibit No. Description
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99 Press Release dated as of June 22, 1999
Page 4 of 4 pages.
Exhibit 99
Arch Coal Comments on Ashland's Decision to Explore
Strategic Alternatives for Its Investment
ST. LOUIS, Missouri -- Ashland Inc., which owns 58% of Arch Coal's shares
outstanding, announced today that it was exploring strategic alternatives for
its investment in Arch. Ashland's decision has no immediate impact on Arch Coal
or its operations.
"We fully support Ashland's decision to investigate options for creating
additional long-term value for the shareholders of both companies," said Steven
F. Leer, Arch Coal's president and chief executive officer. "Likewise, Arch Coal
remains focused on maximizing value for all its shareholders. Toward that end,
we will continue to concentrate on our principal financial objectives: paying
down debt, boosting earnings, further increasing cash flow, improving
productivity and reviewing the sale of non-strategic assets."
"In the past two years, Arch Coal has dramatically expanded both its
low-sulfur reserve position and its production of low-cost, compliance coal, "
Leer said. "We believe these moves have placed Arch in an excellent position to
capitalize on the changes that are occurring in the U.S. coal market, including
the growing demand for electricity, the deregulation of the utility industry,
and the shift to low-sulfur coal."
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995, including Arch Coal's
expectations with respect to value creation and the company's relative
competitive position. Although Arch Coal, Inc. believes the expectations
reflected in such forward-looking statements are based on reasonable
assumptions, it can give no assurance that its expectations will be attained.
Factors that could cause actual results to differ materially from expectations
include changes in local or national economic conditions; changes in mining
rates and costs for a variety of operational, geologic, permitting, labor and
weather-related reasons, including equipment availability; and other risks
detailed from time to time in the company's reports filed with the Securities
and Exchange Commission, including quarterly reports on Form 10-Q, reports on
Form 8-K, and annual reports on Form 10-K.
Arch Coal is the nation's second largest coal producer, with subsidiary
operations in West Virginia, Kentucky, Virginia, Illinois, Wyoming, Colorado and
Utah. Through these operations, Arch Coal provides the fuel for approximately 6%
of the electricity generated in the United States.