US Steel courtship likely to fire up industrial sector
Industrial US was jolted after United States Steel got a $7.8 billion cash offer from Esmark, after rejecting a bid from Cleveland-Cliffs. IGTV financial analyst @AngelineOng looks at why this courtship might have legs.
(Video Transcript)
Steel rally boosts share price
One sector we're watching closely for you is steel. United States Steel in focus, after a privately held firm Esmark, made a $7.8 billion all-cash offer for the company.
Now, this topped a rejected bid from Cleveland Cliffs, just showing you the reaction on the United States Steel share price. This is after it rejected that bid from Cleveland Cliffs. As I mentioned earlier, the offer from Esmark was higher and represents a premium of 54% to the stock's close on Friday.
Can we expect more suitors?
So where is the bottom line? Well, United States Steel shares could have further to go as the company says it will review options after getting multiple unsolicited proposals. This means we could see this rally continue if it gets more offers and suitors.
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