Why Cleveland-Cliffs Stock Popped Today
Shares of iron ore mining company and steelmaker Cleveland-Cliffs (NYSE: CLF) closed 5.5% higher on Thursday, buoyed by news that it has bought back from ArcelorMittal (NYSE: MT) all of its Series B Participating Redeemable Preferred Stock.
The preferred stock in question amounted to 58 million common shares, and was worth $1.2 billion in total.
Management described the buyback as "a no-brainer," saying it was "highly accretive" for Cleveland-Cliffs shareholders, in that it will concentrate profits among fewer shares outstanding, shrinking the company's diluted share count by 10% "on a pro forma basis."
Source Fool.com