The pps was low because AK was near being insolvent. This merger prevents AKS from filing for BK where shareholders lose everything. The CEO for Cliffs is a White Knight who more or less is bailing them out of which would have been a certain defeat. BK is what shorts were banking on and the only ones upset with the deal are short positions.
Cleveland Cliffs is going to build up this empire together with AK Steel and beyond what ever seemed possible for AK who would have disappeared and sold off assets in a BK fire sale. Cliffs will hold the company together and it's workforce.
Without Cliffs, AK Steel would have had nothing. With Cliffs AKS shareholders have everything, including 40% of a near billion dollar state of the art brand new HBI plant and also a cash dividend.
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