NEW YORK (TheStreet) -- Shares of Cliffs Natural Resources (CLF) edged lower in after-hours action on Tuesday after the Cleveland-based mining company agreed to acquire Canada's Consolidated Thompson Iron Mines Limited for $4.95 billion.
The deal values shares of Consolidated Thompson, a Montreal-based iron ore miner that trades on the Toronto Stock Exchange under the symbol "CLM" at C$17.25 each, or $17.42 each. Consolidated Thompson's stock closed Tuesday's regular trading session at C$13.38.
Cliffs Natural Resources' stock was last quoted at $83.51, down 1.7%, on volume of around 123,000, according to Nasdaq.com. The shares were up more than 50% in 2010, and analysts remain bullish with eight of 11 analysts covering the stock at either strong buy (3) or buy (5), according to Nasdaq.com.
In its press release, Cliffs Natural said it has sufficient committed financing and available liquidity to complete the cash deal, and that it expects the transaction to be "modestly accretive" to its earnings per share and cash flow in both 2011 and 2012. The company expects to complete the deal early in the second calendar quarter of 2011.
Zale Corp.Zale Corp. (ZLC) was glittering in extended trades after the Dallas-based jewelry retailer said holiday sales were strong. The stock leapt nearly 6% to $4.26 on volume of more than 30,000. Based on a regular session close at $4.03, the shares are up roughly 15% in the past 52 weeks. Zale said same-store sales rose 8.5% over the November-December period and total revenue came in at $533.1 million, up 8% from $493.7 million in the same period a year earlier. "The Holiday sales results represent progress as we continue to stabilize the business and return to profitability," said Theo Killion, the company's CEO. "The investments we've made in our field teams, the clarity of our marketing message and our back to basics merchandising strategy were validated by our guests during the most critical selling period of the year." Zale is scheduled to report its fiscal second-quarter results on Feb. 23. The average estimate of analysts polled by Thomson Reuters is for earnings of 81 cents a share for the three-month period ending Jan. 31 on revenue of $584 million.
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