Cross listing: a case study of Cliffs Natural Resources Inc. (CLF)

About 50 U.S.-listed companies are cross-listed on NYSE Euronext, the EU's largest regulated equities market. What they've discovered is that Euronext listings are ideal for U.S.-listed companies that want to diversify their shareholder base, gain a European trading presence or increase their market visibility in the eurozone, the world's second largest source of capital.
"Globalization means that companies, customers and suppliers have a presence in more locations than ever, and when these locations are in the eurozone, cross-listing on Euronext certainly increases the visibility of an enterprise or brand," says Marjorie Adams, chair of DLA Piper's capital markets group in the U.S.
Other benefits of cross-listing on Euronext include the ability to trade and list in dollars and euros; the ability to attract investors whose mandates only allow investing in euro-denominated shares; the potential for a lower cost of capital through increased liquidity premiums on equity; typically lower bid-ask spreads than single exchange companies; and less information asymmetry between capital markets, as firms with multiple listings generally get twice the analyst coverage. A Euronext listing also allows European money managers to avoid certain regulatory filings and mandates for eurozone-only listed companies.
In January 2008, Euronext made cross-listing even more attractive by introducing Fast Path, a streamlined and cost-effective way for U.S.-listed companies to cross-list on Euronext with fewer regulatory hurdles.
Six companies, including Anheuser-Busch Companies Inc. and Philip Morris International Inc., have used Fast Path since it became available. But it's not just the giant international consumer brands that benefit from cross-listing on Euronext.
Cross-Listing Case Studies
Consider the case of