Why Cleveland-Cliffs Stock Scaled Mountains in December
Cleveland-Cliffs (NYSE: CLF) failed to capture its long-pursued merger target, but investors seem to prefer the company's plan B. Shares of Cleveland-Cliffs gained 19% in December, according to data provided by S&P Global Market Intelligence, after the company said it was refocusing its capital toward stock buybacks instead of dealmaking.
You don't often associate the steel industry with high drama, but last summer Cleveland-Cliffs put rival U.S. Steel (NYSE: X) in play with an offer that was more than 40% above where the target had been trading. U.S. Steel rejected that proposal but said it would consider options, putting its fate, and the future of Cleveland-Cliffs, in doubt.
Investors got a lot more clarity in December, when U.S. Steel agreed to be acquired by Nippon Steel for $14.9 billion, or nearly double what Cleveland-Cliffs had initially offered. U.S. Steel said it entertained bids from a number of suitors, but Nippon was the clear winner of the auction.
Source Fool.com
