This website uses cookies to ensure you have the best experience. Learn more

Cliff Natural Resources Essay

2179 words - 9 pages

Cliffs Natural Resources Inc. (CLF)

In this paper we examine the dynamics of cross-listing, particularly US companies that cross-list in the NYSE Euronext equity-based exchange. We look at the number of US firms cross-listed in this exchange and then study one of these companies specifically, Cliffs Natural Resources, Inc. In addition, we explore the importance of cross-listing in NYSE Euronext as well as: the benefits, costs and requirements of fast path cross-listing and the trading volumes of the shares transacted in the exchange.
The foundation of our case study is based on Cliffs Natural Resources Inc. (CLF), an international mining and natural resources company headquartered in ...view middle of the document...

The positive outcomes of this listing did not wait, CLF opened on Euronext with an Initial 17.25 million-share offering from which European investors acquired 80 percent. Furthermore, a year after the listing, the proportion of CLF's institutional shareholder base in Europe and the U.K. quadrupled, rising from 2 percent to 8 percent of all institutional shares in the company (Melnitzer).

There are about 50 U.S listed companies cross listed on the NYSE Euronext (Melnitzer). Of these companies, 22 are US-based. Based on their market, firms are listed as follows: 4 companies are registered in NYSE Euronext Brussels and 18 are registered in NYSE Euronext Paris. Some of the well “renounced” US firms cross listed on NYSE Euronext are: The Proctor and Gamble Company, GE, Ford Motor, Coca-Cola, Pfizer Inc., Merck & Co., Inc., Cliffs Natural Resources Inc., Caterpillar Inc., International Business Machince Corp., among others. For a complete list, please refer to Appendix A.

The best advantage is the reduction in the cost of capital. Cross-listing is probable that it reduces the cost of capital because the closing of domestic markets, the efficient frontier is determined just for the set of domestic assets. Thus, the equity cost of capital depends on the risk premium of the domestic market portfolio (Lasfer 3).
Some benefits of cross list in foreign capital markets can be: an increase of visibility of the firms; establishment of a secondary market for shares which can be used as incentive for employees and management in a foreign subsidiary; political acceptability to its customers, creditors, and suppliers (Lasfer 3).
NYSE Euronext is an exchange group which offers a global cross-listing market, visibility and trading platform, providing cost-effective, access to liquidity and investors in the U.S. and in Europe. This group offer to the organizations: the ability to raise and trade capital in $ and EUR, and contact investors and constituents directly across the world (NYSE Euronext, New Releases).
US firms cross list in European market because it offers many benefits for those companies. Some of the benefits are: (1) facility to trade and list in dollars and euros; (2) ability to get investors whose mandates only allow investing in euro-denominated; (3) access to European investors and a diversified shareholder base; (4) ability to raise capital in the European Union; (5) provide shareholder liquidity at a reduced cost; (6) less rigorous regulatory requirements; (6) a tool for employee stock purchase plans or equity incentive plans; (7) a facility for future capital raisings and/or Merge & Acquisitions activity; (8) media coverage which can enhance their global profile; (9) the ability to grow international exposure for the company; (10) branding and product visibility opportunities in all of NYSE Euronext’s European locations (London, Paris, Amsterdam, Brussels and Lisbon); (11) commitment to a strategically important region...

Other Papers Like Cliff Natural Resources

Enron: The Smartest Guys In The Room

1240 words - 5 pages At the heart of Enron’s story are its flashy, macho culture and its disputed inability to control expenditures. With being named one of the most innovative companies of its time, one would assume Enron would promote equality among the sexes and diversity. Every top Enron executive (excluding Rebecca Mark and Amanda Martin) was a white male with a top-notch education. Ken Lay, Jeff Skilling, Andy Fastow, and Cliff Baxter all came from Ivey

Land and Sea Explorers of Australia (Comparison

1239 words - 5 pages Australian’s economy while sea explorers like the Dutch explorers set out to trade and find natural resources like gold and iron ore due to the broke out of industrial revolution in Europe. Meanwhile, sea explorer were also sent by the government to bring glory and fame to the country in the navigational field and the spread of Christianity, which is totally different from land explorer who was sent to find fertile land for agricultural purposes and

James Wolfe

2186 words - 9 pages . Vancouver: Douglas & McIntyre, 2008. "A Vital Corridor | Earth Sciences." Welcome to Natural Resources Canada | Bienvenue à Ressources naturelles Canada | Natural Resources Canada. http://www.nrcan.gc.ca/earth-sciences/products-services/mapping-product/geoscape/quebec/6453 (accessed December 6, 2012). Volunteer on Expedition, James Thompson, Major Moncrief, and Peter McKellar. A Short authentic account of the expedition against Quebec in the year

Fixing Hawaii Trails

1464 words - 6 pages , residents say. Those stories and other incidents, ranging from picnicking  on curbs and leaving behind bags of trash as well as car break­ins, prompted the  Mau​wili Estates Community Association to petition the governor, the Department of  na​ Land and Natural Resources and their legislators to make improvements, such as  establishing a parking lot (Fujimori).  Other residents complained about not being able to open their car doors and

The Galapagos Islands

2255 words - 10 pages years of age to $100’s for Foreign Tourists non-residents of Ecuador over 12 years of age. The Galapagos Marine Reserve Law is to protect the marine life around the islands which extends to about 40 miles (24-64 km) from the base line). The park service even provides tour guides that are considered to be the first line of defense in protecting the park’s natural resources. (Galapagos Online, 2009) Both the Galapagos Island National Park

Restoration

3607 words - 15 pages , increased erosion, increased runoff, and decreased biodiversity.  Since 2007, over 5000 native plants have been re-established of more than 30 species (Casey Peters and Lisa Stratton, 2007).  2.2; Campus Point Description: Campus point consists of a beach, seaside cliff, and plateau. Along the beach, when the tide comes in, tide pools form and host a variety of sea life, including urchins and starfish. Overlooking the ocean are the cliffs and the

Sci201 -1504a-09 Environmental Science and Sustainability Ip4 Municipal Landfills

2242 words - 9 pages time frame to get water samples tested per regulations and have it sent for testing to check for contamination. The groundcover must be adequate and is checked by the Missouri Department of Natural Resources regularly (J.C. Miller). Image of a modern landfill from (Waste Away) The Tessman Road Landfill in San Antonio, TX The Tessman Road Landfill in San Antonio, TX is in the news for producing gas and electricity from their landfill. It

Colinization

3645 words - 15 pages new world economy, Africa seems to be left out. A place with an abundance of natural resources and agricultural capabilities, Africa has yet to reach its full potential. There are many theories to which one could attribute the lack of growth in Africa to but I will be specifically looking at decolonization and how, in my opinion, it has disallowed Africa to become a major player in the world economy. to understand why africaneconomies are

Should Income Tax Raise on Individual Making $250000

2906 words - 12 pages income tax and the IRS. Durst, R. (2009). Federal Estate Taxes Affecting Fewer Farmers but the Future Is Uncertain. Amber Waves: The Economics Of Food, Farming, Natural Resources, & Rural America, 7(2), 10-15. Eberstadt, N. (2012). A nation of Takers. Templeton Press, 300 Conshohocken State Rd, suite500,West Conshohocken, Pennsylvania, 19428 Haney, J. R. (1977). INTEGRATION OF THE CORPORATE AND INDIVIDUAL INCOME TAXES. National Tax Journal

Gold Analysis

9281 words - 38 pages stability to their portfolios. Continued Financial Crisis in 2013 Means Higher Gold Prices Some of the key indicators putting upward pressure on Gold prices for 2013 are: the uncertainty following the long-term effects of the last-minute U.S. fiscal cliff aversion, increased monetary easing and currency debasing policies worldwide, rock-bottom interest rates, concerns over the financial stability of the euro zone, and diversification into

Article Review

5943 words - 24 pages a cliff and then spread out into a powdery bowl. “I like the look of that one, too,” he said. They still hadn’t decided which course to take when they raised their ski tips at the top of the lift. Sliding off the chair, they stopped to look again at the map. Alan pointed to the Dragon Chute, which appeared to be closer. They skied to the brink of the cliff. Bending his knees and pushing in his poles, Alan launched himself into the swirling snow

Related Essays

Coastal Sedimentary Environments, Geomorphological Processes And Landforms And The Economeic Aspects

3814 words - 16 pages the shoreline is therefore very important for planning conservation measures such as protection of human life, property, and natural environments. The coastal zone is receiving an increasing attention because of the pressures of increasing population and industrial developments. Also erosion is caused by shifting of river mouths and spits. Protection of natural resources, the loss of habitats, severe coastal erosion, sedimentation in ports and

Heart Of Darkness Analysis

678 words - 3 pages political issues. During this time Belgium had been slowly taking over the Congo and using its natural resources. The goal, or some said the cover of European settlement in the Congo was to colonize and to “enlighten” those who were not yet “civilized”. Allthough this was a part of the colonzation, there were definitely those there for their own personal wealth. Europeans would go over as “pilgrims” but as marlow says, were there based fully on greed

Ancient Solar Architecture Essay

1785 words - 8 pages planet’s resources on our own comforts. When heating a house took lots of effort it was the wise choice to design a building that could use the energy provided by the sun in the most advantageous ways. Unfortunately, in my opinion, since all we have to do now to heat our house is a turn a dial and pay the bills, many of the simplest ways to cut down on our rising energy consumption have been completely disregarded. Fossil fuels allowed people to

Why People Are Moving Away From The North (Mezzogiourno)

1248 words - 5 pages little industry in such a rural part of Italy and companies don’t invest here. Companies don’t invest hear because communication is difficult and transport is bad, this is due to natural barriers such as hills, forest and desert. Another reason is the lack of natural resources such as water, easy food and available land to build on. That Brings me to the Next push, factor lack of paid work. The main source of work is agriculture, this pays very