Shares of iron ore mining company and steelmaker Cleveland-Cliffs (NYSE: CLF) closed 5.5% higher on Thursday, buoyed by news that it has bought back from ArcelorMittal (NYSE: MT) all of its Series B Participating Redeemable Preferred Stock. Management described the buyback as "a no-brainer," saying it was "highly accretive" for Cleveland-Cliffs shareholders, in that it will concentrate profits among fewer shares outstanding, shrinking the company's diluted share count by 10% "on a pro forma basis." Now, because Cleveland-Cliffs just finished reporting second-quarter earnings last week, it will be another several months before shareholders see the benefit of this transaction in dollars and cents.
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