Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, March 16, 1990 TAG: 9003162031
SECTION: BUSINESS PAGE: A7 EDITION: METRO
SOURCE: GEORGE KEGLEY BUSINESS EDITOR
DATELINE: LENGTH: Medium
The planned combination of the two privately held companies was announced in late December, but neither had disclosed any additional information until the joint report Thursday.
The transaction was terminated because tax and legal problems "did not seem to be amenable to a satisfactory solution," according to a statement from Jim McGlothlin, chairman of the parent United Co., and Carl Smith, chairman of Amvest Corp., parent of Amvest Coal.
McGlothlin and Smith "were highly complimentary of each other's operations," the joint statement said. Their failure to get together was unexpected, said a Southwest Virginia man who is close to both companies.
He recalled that this is the second time in recent years that United has canceled a combination with another company. McGlothlin announced United's failure to reach agreement on an affiliation with an unnamed company several years ago.
United and Amvest initially planned to form the largest non-union coal company in the state, mining 14 million tons or more a year. Their combined employment in coal operations would have been 1,400 people.
When the plan was announced, Mike Quillen, an Amvest vice president, said the two companies have similar operating philosophies and both mine high-quality, low-sulfur coal, bringing premium prices in the utility market.
United's major coal operations are in Buchanan County; Amvest operates mainly in Wise County. Both have mines in Kentucky.
United has diversified its business through acquisition of the Dominion Bank Building in Roanoke, the Martha Washington Inn in Abingdon and other real estate.
by CNB