NEW YORK (TheStreet) -- Shares of ArceloeMittal SA (MT) are up 1.99% to $15.87 after it was reported that the steelmaker is in "deep, deep discussions" with BHP Billiton Ltd. (BHP) to acquire the Australian mining company's stake in a major Guinean iron-ore deposit, sources say, the Wall Street Journal reports.
BHP Billiton stock is up 1.71% to $70.70
A deal, potentially worth as much as $500 million, would bring an end to BHP's months long attempt to find a buyer for its 41.3% stake in Mount Nimba, a rich deposit located close the Liberian border, the Journal said.
TheStreet Ratings team rates ARCELORMITTAL SA as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate ARCELORMITTAL SA (MT) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and revenue growth. However, as a counter to these strengths, we also find weaknesses including poor profit margins, weak operating cash flow and generally higher debt management risk."