Shares of Arch Coal Inc. rallied 2.4% toward a record high in morning trade Monday, after the coal producer announced a deal to buy back 500,000 shares from its second-largest shareholder, Monarch Alternative Capital LP. The company said it will repurchase the stock at $83.03 a share, which was 2.2% below Friday’s closing price of $84.94, for a total of $41.5 million. The deal is expected to close on our about Dec. 14. Arch said the repurchase is part of its existing $500 million buyback program. Monarch owned 2.56 million Arch shares, or 10.5% of the shares outstanding, as of Sept. 30, according to FactSet, which was second to OppenheimerFunds Inc.’s 13.6 million shares outstanding. Arch’s stock has rallied 11.4% year to date, while the S&P 500 has climbed 18.5%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News