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WESTMORELAND AGREES TO REPURCHASE A PORTION OF SHARES OWNED BY PENN VIRGINIA

 WESTMORELAND AGREES TO REPURCHASE
 A PORTION OF SHARES OWNED BY PENN VIRGINIA
 PHILADELPHIA, May 6 /PRNewswire/ -- Westmoreland Coal Company (NASDAQ: WMOR), the Philadelphia headquartered producer and marketer of low sulfur coal, announced today that it has entered into an agreement with Penn Virginia Corporation and Penn Virginia Equities Corporation, the owner of 39.6 percent of the outstanding common stock of Westmoreland, whereby Westmoreland will repurchase a portion of its outstanding shares of common stock now owned by Penn Virginia Equities.
 The price to be paid by Westmoreland will be 90 percent of the average market price for Westmoreland stock for two periods, the 15 trading days prior to signing and the 15 trading days ending shortly before the public offering referred to below. The purchase price will not, however, be less than $14 or more than $18 per share. The agreement also provides that it can be terminated by Penn Virginia if the market price of Westmoreland stock reaches $21.60 averaged over any 15 trading-day period, and Westmoreland can terminate the agreement if the market price falls to $11.20 averaged over such a period. The total purchase price will be the greater of $15 million and one-third of the net proceeds of a public offering by Westmoreland of convertible exchangeable preferred stock in an amount currently expected to be $50 million. Westmoreland anticipates filing a registration statement for the public offering in the next few days, and the offering will be made only by means of a prospectus. The purchase is contingent upon the completion of the public offering and certain other conditions.
 In conjunction with the repurchase, Penn Virginia will receive certain registration rights, and board representation rights, and will, until approximately June 30, 1994, limit its ownership interest and restrict actions it might take with respect to Westmoreland.
 Pemberton Hutchinson, chairman and chief executive officer of Westmoreland, said, "This agreement gives us the opportunity to purchase our stock at an attractive price."
 -0- 5/6/92
 /CONTACT: Stephen N. Anderson of Westmoreland Coal, 215-545-2500/
 (WMOR) CO: Westmoreland Coal Company ST: Pennsylvania IN: MNG SU:


KD -- NY108 -- 7383 05/06/92 21:08 EDT
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Publication:PR Newswire
Date:May 6, 1992
Words:358
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