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SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------------------------------ 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): October 5, 1999 Arch Coal, Inc. ------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 1-13105 43-0921172 ------------------ ---------------- ------------ (State or other jurisdiction (Commission File (I.R.S. Employer of incorporation Number) Identification No.) CityPlace One, Suite 300, St. Louis, Missouri 63141 ---------------------------------------------------- (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 October 5, 1999, Arch Coal, Inc. ("Arch") confirmed that it had received a proposal from Ashland Inc. ("Ashland") that contemplates a tax-free spin-off of Ashland's interest in Arch. Arch also confirmed that a special committee of its board of directors is in discussions with Ashland concerning such proposal. Ashland owns approximately 58% of the outstanding shares of Arch. The proposed spin-off would require negotiation and execution of an acceptable agreement between Ashland and Arch, receipt by Ashland of a favorable ruling from the Internal Revenue Service and the approval by Arch's special committee, its board of directors and its shareholders of certain matters to facilitate the spin-off on a tax-free basis. There can be no assurance that an acceptable agreement between Ashland and Arch will be reached, that a favorable ruling from the Internal Revenue Service will be obtained or that the necessary approvals by Arch's special committee, its board of directors or its shareholders will be obtained. Even if an agreement is reached and such conditions are satisfied, the proposed spin-off could take several months to complete. A copy of Arch's press release dated October 5, 1999, confirming receipt of Ashland's proposal and confirming the special committee's discussions with Ashland concerning such proposal is attached hereto and incorporated herein by reference in its entirety. The foregoing summary of the attached press release is qualified in its entirety by the complete text of such document. 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 ----------- ----------- 99 Press Release dated as of October 5, 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: October 5, 1999 ARCH COAL, INC. By: /s/ Jeffry N. Quinn ------------------------- 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 ------------- Exhibit No. Description - ----------- ----------- 99 Press Release dated as of October 5, 1999 Page 4 of 4 pages.


                                                                      Exhibit 99

FOR FURTHER INFORMATION
     Deck S. Slone
     Director
     Communications and
     Public Affairs
     (314) 994-2717

FOR IMMEDIATE RELEASE
October 5, 1999

Arch Coal confirms  receipt of proposal from Ashland Inc.  concerning a tax-free
spin-off of its interest in the company

     St. Louis,  Missouri - Arch Coal, Inc.  (NYSE:ACI)  confirmed today that it
has received a proposal from Ashland Inc. that  contemplates a tax-free spin-off
of Ashland  Inc.'s  interest in the company.  Arch also  confirmed  today that a
special  committee  of its board of  directors  is in  discussions  with Ashland
concerning the proposal.

     On June 22, 1999,  Ashland  Inc.,  which owns  approximately  58% of Arch's
outstanding shares,  announced that it was exploring strategic  alternatives for
its investment in Arch. Ashland announced today that a tax-free  distribution to
its  shareholders  would seem to be its preferred  alternative.  Arch's board of
directors has formed a special  committee of its non-Ashland and  non-management
members to consider  whether the proposal is in the best interest of the company
and its other  shareholders and to negotiate the terms and conditions upon which
a spin-off might occur.

     The  proposed  spin-off  would  require  negotiation  and  execution  of an
acceptable agreement between Ashland and Arch, receipt by Ashland of a favorable
ruling from the  Internal  Revenue  Service and the  approval by Arch's  special
committee,  its board of directors and its  shareholders  of certain  matters to
facilitate the spin-off on a tax-free  basis.  The proposed  spin-off could take
several months to complete.

     This press release contains  forward-looking  statements within the meaning
of the  Private  Securities  Litigation  Reform Act of 1995,  including  but not
limited to statements  regarding a possible transaction with Ashland in the form
of a tax-free  spin-off.  Actual future results may differ  materially from such
statements.  Factors that could cause actual future results to differ materially
from such statements  include,  but are not limited to,  financial  performance;
local or national  economic  conditions;  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 provides the fuel for approximately 6% of
the electricity generated in the United States.