The U.S. dollar's weakness against other currencies is hurting overseas operations of American mining companies, but analysts say it could make them more attractive to foreign takeover.
"Everyone's a target," said Brett Levy, co-director of high yield research at Jeffries & Co. He noted that companies producing raw materials for steel-making, such as metallurgical or coking coal and iron ore, were particularly attractive.
He singled out iron ore pellet producer Cleveland Cliffs (CLF.N: Quote, Profile , Research), while other analysts bandied around names like metals processor Allegheny Technologies (ATI.N: Quote, Profile , Research), aluminum producer Alcoa (AA.N: Quote, Profile , Research) and Freeport-McMoRan Copper & Gold (FCX.N: Quote, Profile , Research).
Levy said with a weaker dollar, U.S. companies operating in Australia or Canada whose currencies have risen against the greenback, could be vulnerable.
"Guys whose costs are driven globally with revenue driven domestically will get squeezed, like the mining guys."
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