Why Shares of Cleveland-Cliffs Rose 29% in October
Shares of iron ore miner and steelmaker Cleveland-Cliffs (NYSE: CLF) rose 29% in October, according to data from S&P Global Market Intelligence. The company reported earnings later in the month, but much of the gains were the result of optimism in the wake of the announced acquisition of the U.S. assets of the steelmaker ArcelorMittal (NYSE: MT), which came at the tail-end of September.
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On Sept. 28, Cleveland-Cliffs announced it would be buying the U.S. operations of ArcelorMittal for an equity value of $1.4 billion and an enterprise value of $3.3 billion. The deal was made up of cash, shares, and nonvoting preferred stock. Acquiring ArcelorMittal USA will bring another steelmaker under Cleveland-Cliffs, which purchased automobile-focused AK Steel back in March.
Source Fool.com
