Why Cleveland-Cliffs Soared Today
Shares of Cleveland-Cliffs (NYSE: CLF) were rising in Monday trading, rallying about 10% as of 2:34 p.m. ET.
It's no secret as to why there is a large move in the stock today. Over the weekend, Cleveland-Cliffs (CLF) went public with its $35 per-share, half-cash, half-stock offer to acquire U.S. Steel (NYSE: X). Reportedly, the offer was made back on July 28. But after U.S. Steel sought to delay a decision to apparently conduct due diligence and seek other strategic options, Cleveland-Cliffs decided to go public in order to get shareholders to force the board's hand.
Usually when a company makes an acquisition offer -- and at a substantial 43% premium, no less -- a stock goes down. However, investors apparently see the benefits of the tie-up and also apparently see a good chance this proposal makes it through the regulatory process.
Source Fool.com
