Friday, July 25, 2008

Steel's on sale

The WSJ had this to say about Cleveland Cliff's:

Cleveland-Cliffs Inc. forgot to get just one thing before unveiling its $10 billion deal for Alpha Natural Resources Inc. -- Phil Falcone's permission.

As a result, the Cleveland iron-ore producer may have inadvertently put itself into play.

Within two days of the deal's July 16 announcement, Harbinger Capital, Mr. Falcone's hedge fund and Cleveland-Cliffs' largest shareholder, said it opposed the move, leaving the transaction in doubt. With a 16% stake in Cliffs, Mr. Falcone effectively has enough power to block any transaction.

Behind the scenes, the Harbinger chief has begun pushing for Cleveland-Cliffs to take advantage of the global steel boom and put itself up for sale. Mr. Falcone reckons Cleveland-Cliffs could fetch as much as $130 a share, or about $14 billion, according to a person close to Harbinger. Harbinger hired Moelis & Co., a mergers-and-acquisitions boutique, as its adviser.

There are rumors about mergers, but the journal has the wrong company. It's not Cleveland Cliff's, it's US Steel (X 136.02)!

You have earnings on Tuesday, and the weekend for rumors.


Anonymous said...

Why would they buy X?

Palmoni said...

Russia raised export tariff's $200 ton on scrap and national steel makers were given the go ahead by Putin to buy up all the scrap steel.

So Russia won't be an exporter of steel.

You don't do that if you don't need it.

5689 said...

birken stock
mbt shoes
christian louboutin outlet
moncler jacket
canada goose
ugg outlet
hogan shoes
coach outlet
skechers shoes
ugg boots outlet