Pittston to Sell Coal Operations, Combine Three Stocks Into One

Pittston Co. on Monday announced plans to eliminate its tracking stock structure and sell its coal business to focus on the company’s faster-growing armored truck, home security and freight operations.

Pittston, based in Richmond, Va., has seen prices of all three of its stocks fall this year.

The decision to fold the businesses into one stock marks a contrast to a trend throughout corporate America. Several of the largest U.S. companies, including ATT Corp., SBC Communications Inc. and Aetna Inc., are considering tracking stock mechanisms, which enable investors to own shares in just one part of a company’s business.

Pittston said the company would exchange shares of Pittston BAX, a global freight transportation and logistics company based in Irvine, and Pittston Minerals Group tracking stocks for Pittston Brink’s Group shares.

The transaction would occur on Jan. 14, at which time total shares outstanding of Pittston Brink’s would rise from 39 million to about 49 million.

On the New York Stock Exchange, Pittston Brink’s rose $3.13 to close at $21.50; Pittston BAX rose 6 cents to close at $10.13; Pittston Minerals rose 50 cents to close at $1.63.

Pittston, which has been in the coal business for nearly 70 years, said it plans to sell its Appalachian-based mining operations and reserves.

As part of that sale, the company plans to establish a voluntary employees beneficiary association to help fund $600 million in liabilities, including medical benefits for coal workers and their families to cover black lung disease expenses and workers’ compensation. Proceeds of the coal sale would provide partial funding.