Peabody Energy board OKs spin-off of Patriot Coal

By Jennifer Chiou

New York, Oct. 10 - Peabody Energy Corp. announced that its board of directors approved a spin-off of coal assets and operations in West Virginia and Kentucky through a special dividend of all outstanding shares of Patriot Coal Corp.

The St. Louis coal company said that the distribution of Patriot stock to Peabody Energy shareholders is slated for Oct. 31 at a ratio of one share of Patriot Coal stock for every 10 shares of Peabody held.

The record date is Oct. 22.

"We believe this spin-off unlocks long-term value for shareholders, who will retain ownership in the world's largest coal company and obtain ownership in a leading Eastern U.S. producer with a major metallurgical and steam coal position," said Peabody chairman and chief executive officer Gregory H. Boyce in a news release.

The company noted that two existing Peabody board members, Irl F. Engelhardt and Bobby R. Brown, will move to Patriot.

Patriot will be an independent public company traded on the New York Stock Exchange under "PCX."

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