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Thoughts on Cleveland Cliffs (CLF), Alpha Natural Resources (ANR) Deal

 Jul 16, 2008 01:12 PM UTC
Symbol Sentiment Start Return Closed
MEE n/a
ANR Positive 07/16/08 +0.00% 07/16/08
MT n/a
CLF Positive 07/16/08 -5.78% 07/25/08
WLT n/a

Graphic_arrow1 Via Fund my Mutual Fund:  

First, I have a flood of emails this morning on this subject. I don't have time to answer each individually so please consider this topic my email response.

  • Iron ore and coal miner Cleveland-Cliffs Inc (NYSE:CLF - News) said on Wednesday that it would acquire Alpha Natural Resources Inc (NYSE:ANR - News) for $10 billion in cash and stock, expanding its coal assets and positioning itself to capitalize on the boom in the global steel industry.
  • Alpha mines vast amounts of metallurgical coal, which is used primarily to make coke, a key component in steel making. It also produces steam coal, used mainly by utilities as fuel for electricity generation.
  • Stockholders of Alpha, an Appalachian coal producer, will receive 0.95 Cleveland-Cliffs share and $22.23 cash for each of their shares.
  • Based on closing stock prices on Tuesday, the deal values Alpha at $128.12
...




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