Consolidated Thompson takeover bid worth $4.9B

Cliffs Natural Resources said Tuesday it has agreed to buy Montreal-based Consolidated Thompson Iron Mines for about $4.9 billion in cash.

Cleveland-based Cliffs is offering $17.25 per share in cash in a deal that has the support of Consolidated Thompson's directors and senior executives.

Consolidated Thompson operates the Bloom Lake open-pit iron mine in Quebec, near the border with Labrador, and two adjacent development properties.

Its shares closed up 16 cents at $13.38 on the Toronto Stock Exchange on Tuesday. The deal was announced after the close.

Cliffs said in a release it has signed an agreement with the company's largest shareholder, Wuhan Iron and Steel of China, which supports the offer. Wuhan owns nearly 19 per cent.