Why Cleveland-Cliffs Stock Fell in August
Cleveland-Cliffs (NYSE: CLF) began the month with disappointing results, followed by an audacious bid to acquire one of its largest rivals. Investors warmed to the takeover bid, but it was the disappointing results that drove the stock, sending shares of Cleveland-Cliffs down 13.4% for the month, according to data provided by S&P Global Market Intelligence.
Never let it be said the steel industry is boring! Cleveland-Cliffs started the month on a downward slope after reporting earnings that missed expectations, leading investors to worry that a slowing economy is cooling demand for commodities and finished industrial products.
The company's answer to that slowdown is consolidation. Midmonth, Cleveland-Cliffs went public with a $35-per-share bid to acquire rival U.S. Steel (NYSE: X). Investors initially cheered the $7.3 billion bid as a way to drive down costs and improve market share, but that momentum faded after a competing bid from privately held Esmark raised concerns about a potential bidding war.
Source Fool.com
