The acquisition, however, will make the company bigger and more expensive for potential acquirers, likely accounting for the slide in its stock price on Wednesday. (See "New Heights For Cleveland-Cliffs") Robson also noted that some investors may have left because they had wanted a straight iron-ore play.
"The main issue to assess is whether the Algerian event represents a new ongoing threat and a general associated elevation in the risk environment or a one-off occurrence which may now result actually in tighter security in the region, " says Nick Robson, the head of Jardine Lloyd Thompson's credit, political and security risk business.