JPMorgan analyst Michael Gambardella believes Cleveland-Cliffs' (CLF) proposed acquisition of AK Steel (AKS) in a $3B all-stock transaction should go through as proposed given the unlikelihood of anti-trust opposition or another bidder. The analyst is concerned that Cleveland-Cliffs could be trading its relatively defensible business selling iron ore pellets in the Great Lakes, which generates higher margins, for a more volatile, lower margin integrated steel company in AK Steel. The analyst keeps a Neutral rating on Cleveland-Cliffs and upgraded AK Steel to Neutral from Underweight.