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WESTMORELAND COAL ADOPTS SHAREHOLDER RIGHTS PLAN

 PHILADELPHIA, Jan. 29 /PRNewswire/ -- Westmoreland Coal Company (NYSE: WCX) announced that its board of directors had yesterday adopted a shareholder rights plan.
 According to Pemberton Hutchinson, chairman of the board, "The Rights provide protection against coercive or unfair takeover tactics, and should encourage anyone seeking to acquire the company to negotiate with the board first. The adoption of the Rights Plan was not taken in response to any known effort to acquire the company." The new plan has been under consideration for some time, Hutchinson noted, and is similar to plans recently adopted by many public companies.
 The board declared a distribution of one preferred stock purchase right for each outstanding share of Westmoreland Common Stock. In the event that any person acquires 20 percent or larger position in Westmoreland, each holder of a Right (other than the acquiring person or group) will be entitled to purchase one one-hundredth of one share of Westmoreland Series B Junior Participating Preferred Stock at a purchase price of $30, or in lieu of the Preferred Stock, the number of shares of Westmoreland Common Stock having a market value at that time of twice such purchase price. If Westmoreland is acquired in a merger or other business combination transaction, each holder of a Right (other than the acquiring person or group) will be entitled to purchase a number of shares of the acquiring company's common stock having a market value at that time of twice such purchase price. The board of directors has the flexibility to lower the 20 percent thresholds to not less than 10 percent prior to the time any person or group acquires 20 percent or more of Westmoreland.
 Westmoreland will be able to redeem the Rights at a redemption price of $.01 per Right at any time until the 10th business day (subject to extension) after a public announcement that a 20 percent position is acquired.
 The distribution of the Rights will be made on Feb. 11, 1993, payable to shareholders of record on that date. The Rights will expire 10 years later on Feb. 11, 2003. The Rights distribution is not taxable to shareholders.
 Details of the Rights distribution are contained in a letter which is being mailed to all shareholders of the company.
 /delval/
 -0- 1/29/93
 /CONTACT: Stephen N. Anderson of Westmoreland Coal, 215-545-2500/
 (WCX)


CO: Westmoreland Coal Company ST: Pennsylvania IN: MNG SU: SRP

MP-LJ -- PH009 -- 0703 01/29/93 11:02 EST
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Publication:PR Newswire
Date:Jan 29, 1993
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