Cleveland-Cliffs: Portman board OKs tender offer to buy back 16.5M shares

May 22, 2008

SAN FRANCISCO, May 22 (Thomson Financial/Forbes) – Cleveland Cliffs Inc. late Wednesday said the board of Portman Ltd., an Australian iron ore producer in which it holds a majority stake, has authorized a tender offer to buy back up to 16.5 million shares, or around 9.4% of its common stock.

Cleveland-Cliffs (nyse: CLFnews people ) said it will not participate in the tender repurchase.

Certain shareholders of record as of June 3 will be allowed to participate in the voluntary tender offer.

Eligible shareholders may offer to sell some or all of their shareholdings

at a fixed-price discount of 14% to the volume weighted average price of

Portman shares traded on Australian Stock Exchange through May 26.

The tender period will close on June 24. To the extent tenders are received for the buyback in excess of 9.39% of Portman’s outstanding shares, a scale-back process will be applied, Cleveland-Cliffs said.

Shares of the Cleveland-based mining company closed the regular session down $4.34 at $92.99.

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