Arch CoalNEW YORK May 2 (Reuters) - Arch Coal (ACI.N: Quote) will buy smaller peer International Coal Group Inc (ICO.N: Quote) in an all-cash deal for $3.4 billion to create the second-largest U.S. producer of steel-making coal, the companies said on Monday.
Arch will pay $14.60 per share of International Coal under the definitive agreement signed between the companies.
Arch expects to start its tender offer for the International Coal shares around the middle of May. Owners of about 17 percent of ICG shares outstanding have agreed to tender their stock in the offer. (Reporting by