Last Updated: Tuesday, January 11, 2011 5:33 PM ETCliffs Natural Resources said Tuesday it has agreed to buy Montreal-based Consolidated Thompson Iron Mines for about $4.9 billion in cash.
Cleveland-based Cliffs is offering $17.25 per share in cash in a deal that has the support of Consolidated Thompson's directors and senior executives.
Consolidated Thompson operates the Bloom Lake open-pit mine, shown in August, in Quebec, near the border with Labrador. (Consolidated Thompson Iron Mines) Consolidated Thompson operates the Bloom Lake open-pit iron mine in Quebec, near the border with Labrador, and two adjacent development properties.
Its shares closed up 16 cents at $13.38 on the Toronto Stock Exchange on Tuesday. The deal was announced after the close.
Cliffs said in a release it has signed an agreement with the company's largest shareholder, Wuhan Iron and Steel of China, which supports the offer. Wuhan owns nearly 19 per cent.
With files from The Canadian Press
Cliffs said in a release it has signed an agreement with the company's largest shareholder, Wuhan Iron and Steel of China, which supports the offer. Wuhan owns nearly 19 per cent.
With files from The Canadian Press
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