ICG Faces Lawsuits Over Sale to Arch
SCOTT DEPOT, W.Va. (AP) - International Coal Group is facing two lawsuits over its proposed $3.4 billion takeover by Arch Coal Inc.
General Counsel Roger Nicholson confirmed Tuesday that shareholder lawsuits challenging the deal have been filed in Delaware and Putnam County.
Nicholson says ICG plans to defend itself against the cases, which the company believes have no merit.
St. Louis-based Arch and ICG announced the deal May 2. It's designed to exploit growing demand for high-priced coal used to manufacture steel. Arch says the combined companies would be the nation's second largest supplier of metallurgical coal.
Met coal commands premium prices often two or three times those charged for coal used to produce electricity. Government figures show exports grew to 55 million tons last year, from 42.5 million in 2008.