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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: - with a K who wrote (20381)	1/18/2005 3:24:03 PM
From: - with a K	Respond to of 78594

I stopped out of CLF for a 22% gain that I wanted to protect with a tight stop. It split 2 for 1 a few weeks ago. I'm nervous about the chart (I see resistance at $54), the US inauguration, the Iraqi elections, and the PMM offer. I may be wrong but for now I am happy to take the gain. stockcharts.com[h,a]daclyiay[pc21!b50!f][vc60][iut!Lg!Lah12,26,9]&pref=G Cleveland-Cliffs says Portman bid is "full" price Fri Jan 14, 2005 02:36 PM ET By Belinda Goldsmith NEW YORK, Jan 14 (Reuters) - U.S. Cleveland-Cliffs Inc. (CLF.N: Quote, Profile, Research) said on Friday its $465 million bid for Australian miner Portman Ltd. (PMM.AX: Quote, Profile, Research) was a "full" price, but it refused to say if this meant it would not sweeten the bid if a rival suitor emerged. Cleveland-Cliffs, the largest producer of iron ore pellets in North America, this week faced a barrage of complaints from its largest shareholders, who were not consulted over its plan to buy Portman, Australia's third-largest iron ore miner. The shareholders prefer that the funds be used for a share buyback instead. Chief Executive John Brinzo reassured shareholders on a conference call that if the deal failed, the company would reinstate its suspended share repurchase plan. However, the company would not clarify whether this meant it would not raise its offer. "Based on the information we have, we believe this is a full and fair price for the shares and Portman sees it that way as well," company spokesman Dana Byrne told Reuters. "We would be surprised if there were any other parties willing to bid more." Cleveland-Cliffs' offer of A$3.40 a share, unanimously backed by Portman's board, drove Portman's stock up to close at A$3.48 on Friday, helped partly by the slim possibility that a higher bid might emerge. Opponents of the deal include Tontine Management LLC, the largest shareholder with a stake of about 10 percent, and the second largest shareholder, Third Point Management Co. During a conference call this week, Tontine's managing principal, Jeffery Gendell, a New York investor with a reputation for buying undervalued stock that become takeover targets, berated the company for its decision. "If your bid fails, you should spend more time talking to your big shareholders," he said. Brinzo said the attraction of buying Portman was to give Cleveland-Cliffs entry to Southeast Asia's fast-growing steel-making markets, particularly China. The Cleveland, Ohio-based company now supplies pellets to integrated steel companies in the United States and Canada. Byrne said Cleveland-Cliffs was not in any other talks at present to increase its presence in Asia. "We are just focused on getting this transaction completed," he said.