Cleveland-Cliffs' Tender Offer for Portman Limited Will Close on March 22, 2005
March 13 2005 - 5:26PM
PR Newswire (US)
Cleveland-Cliffs' Tender Offer for Portman Limited Will Close on
March 22, 2005 CLEVELAND, March 13 /PRNewswire-FirstCall/ --
Cleveland-Cliffs Inc (NYSE:CLF) today announced that it will not
extend its offer for the shares in Portman Limited. The offer
expires at 7:00 p.m. (Perth time) on March 22, 2005. If
Cleveland-Cliffs receives acceptances increasing its voting power
to more than 50% within the last seven days of the offer period,
the offer automatically will be extended under Australian law for
two weeks from the date of the increase. If this occurs,
Cleveland-Cliffs intends to declare the offer free from all
conditions and to reduce the time in which Portman shareholders
would be paid, if they accept the offer, by accelerating the
payment terms to five business days. Commenting on the offer,
Cleveland-Cliffs CEO John Brinzo said: "The fate of our offer for
Portman is now firmly in the hands of Portman shareholders.
Cleveland-Cliffs can take no further action unless shareholders
decide to accept. We cannot increase this final offer, and unless
we get to 50% within the last seven days of the offer period, the
offer cannot be extended or declared unconditional. "Portman
shareholders need to decide whether they want the certainty of
A$3.85 cash, or the uncertainty of holding shares in Portman should
our offer be unsuccessful. We believe there is a real risk that
Portman's share price will fall if Cleveland-Cliffs' offer lapses."
As stated by the Portman board on February 25, 2005, since the
announcement of the offer on January 11, 2005, Portman has not been
approached by any potential bidder and the Portman board has no
reason to believe that a higher offer will emerge. Mr. Brinzo
continued: "We note that since March 2, 2005, the Portman share
price has closed within three cents of our offer price of A$3.85.
Since March 9, the Portman share price has closed below our offer
price and closed at A$3.82 on March 11, 2005. "In addition, the
Portman board has indicated it thinks the offer is fair and has
recommended that shareholders accept the offer. Cleveland-Cliffs
also announced that the institutional acceptance facility had been
withdrawn as of today and urged shareholders who were considering
utilizing the facility to instead accept the offer. If shareholders
have any questions in relation to the offer or accepting it, they
should contact the information line on 1800 24 23 00 (toll free)
(callers in Australia) or +61 2 9207 3622 (callers outside
Australia). Cleveland-Cliffs Inc, headquartered in Cleveland, Ohio,
is the largest producer of iron ore pellets in North America and
sells the majority of its pellets to integrated steel companies in
the United States and Canada. The Company operates six iron ore
mines located in Michigan, Minnesota and Eastern Canada. References
in this news release to "Cleveland-Cliffs," "Cliffs" and "Company"
include subsidiaries and affiliates as appropriate in the context.
This news release contains predictive statements that are intended
to be "forward-looking" within the safe harbor protections of the
Private Securities Litigation Reform Act of 1995. Although the
Company believes that its forward-looking statements are based on
reasonable assumptions, such statements are subject to risk and
uncertainties. There can be no assurance that the offer to acquire
the shares of Portman Limited will be accepted or that a superior
offer will not emerge or any transaction completed. Reference is
made to the detailed explanation of the many factors and risks that
may cause such predictive statements to turn out differently, set
forth in the Company's Annual Report for 2003, Reports on Form 10-K
and Form 10-Q and previous news releases filed with the Securities
and Exchange Commission, which are publicly available on
Cleveland-Cliffs' website. The information contained in this
document speaks as of the date of this news release and may be
superseded by subsequent events. For further information, please
call: CLEVELAND-CLIFFS Media - United States Dana Byrne
Cleveland-Cliffs Vice President-Public Affairs +1 (216) 694.4870
Financial Community - United States Don Gallagher Chief Financial
Officer Cleveland-Cliffs +1 (216) 694.5459 MacKenzie Partners -
United States Larry Dennedy + 1 (212) 929.5239 Joe Doherty + 1
(212) 929.5958 MacKenzie Partners - United Kingdom Steve Balet + 44
207 170 4155 Media - Australia Kate Kerrison Kate Kerrison +
Company (0413) 946 704 Financial Community - Australia Wayne
Seabrook Wilson HTM (02) 8247 6600 http://www.cleveland-cliffs.com/
http://www.portman.com.au/ DATASOURCE: Cleveland-Cliffs Inc
CONTACT: Media - United States, Dana Byrne, Vice President-Public
Affairs, +1-216-694-4870, or Financial Community - United States,
Don Gallagher, Chief Financial Officer, +1-216-694-5459, both of
Cleveland-Cliffs Inc; or Larry Dennedy, +1-212-929-5239, or Joe
Doherty, +1-212-929-5958, both of MacKenzie Partners - United
States; or Steve Balet of MacKenzie Partners - United Kingdom,
+44-207-170-4155; or Media - Australia, Kate Kerrison of Kate
Kerrison + Company, +0413-946-704, or ; or Financial Community -
Australia, Wayne Seabrook of Wilson HTM, +02-8247 6600, or Web
site: http://www.cleveland-cliffs.com/ http://www.portman.com.au/
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