Here is an interesting post from RR. Wondering if Cliffs is trying to raise money, by selling some but not all of its shares, to buy the warrants. The highlighted text was done by RR. Wondering if Cliffs got wind of a potential buyout coming? Mr. Peter Ravenscroft, once head of Global Exploration for Cliffs, does sit on the board as a director. Just another scenerio to ponder. Comments?

From RR...

Takeovers

In a takeover situation, the target company's warrants will be annulled. Warrant holders will therefore be forced to exercise their warrants, or sell the warrants, at that time. This has the effect of immediately realising the intrinsic value of the warrants, but losing the premium (time value). In the case where the bid price is below the warrant's exercise price (i.e. there's no intrinsic value), the warrants would become worthless. In the past, there was little formal protection in the warrant documents for warrant-holders to guard against it. And the consequent threat of this led to a permanent low rating for some warrants. Fortunately, more and more warrants now have a formal compensation scheme for warrant-holders in the case of a takeover. But, obviously, this is an important issue that investors should be aware of.

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