By The Canadian Press | The Canadian Press – 6 minutes ago
CLEVELAND - Cliffs Natural Resources Inc. (NYSE:CLF) said Friday that shareholders of Consolidated Thompson Iron Mines Limited's (TSX:CLM) have overwhelmingly approved its planned takeover of Thompson.
Cliffs has offered C$17.25 in cash for each common share outstanding in the friendly takeover that values the company at about $4.9-billion.
The U.S. mining company has signed a support agreement with Consolidated Thompson's largest shareholder, Wuhan Iron and Steel of China. The Chinese company owns nearly 19 per cent of Consolidated Thompson.
Demand for iron ore, used in the production of steel, has returned since the end of the recession as the emerging economies of India and China have swung back into high gear.
Stock in Consolidated Thompson was unchanged at $17.11 on heavy volume of more than 7.2 million shares Friday on the Toronto Stock Exchange.
