Arch Coal, in a bid to shed 4.5 BILLION in debt, files for bankruptcy

[Human101948]

1. Well, somebody made out like a bandit in this deal...

Looks like they bought a steaming pile of slag--

Arch Coal to Buy International Coal for
$3.4 Billion
By Chris V. Nicholson May 2, 2011 8:15 am
6:40 p.m. | Updated
Arch Coal said on Monday that it would buy the International Coal Group for
$3.4 billion in cash, creating one of the world’s largest coal producers.
The deal is largely a bet on steel: the combined company would be the
second­biggest producer of metallurgical coal in the United States at a time
when prices for such steel­making coal are rising thanks to demand from
China and India. The biggest producer of steel­making coal is Alpha Natural
Resources, which outbid Arch Coal earlier this year to acquire Massey Energy
for $7.1 billion in cash and stock.

The deal is also something of a vindication for Wilbur L. Ross Jr., who
founded International Coal. The investor, known for his willingness to plunge
into distressed industries, acquired assets out of bankruptcy from the mining
company Horizon Natural Resources in 2004. From that, he cobbled together
International Coal from a series of acquisitions. The company went public in
December 2005 at $11 a share. Mr. Ross holds a 6 percent of the company,
having halved his stake late last year.

Arch is offering $14.60 for every International Coal share, a premium of
32 percent to I.C.G.’s closing stock price on Friday.

http://dealbook.nytimes.com/2011/05/02/arch-coal-to-acquire-icg-in-3-4-billion-deal/