United States Steel Loses Bidder Esmark Amid Pressure From Union Workers
Portfolio Pulse from Lekha Gupta
Esmark has withdrawn its bid for the acquisition of United States Steel Corp (X) due to pressure from the company's workers union, which supports the bid from Cleveland-Cliffs Inc (CLF). Esmark had intended to offer $35 per share, matching CLF's offer. U.S. Steel has clarified that its labor agreement does not grant the union veto power over potential company sale decisions. ArcelorMittal SA (MT) is also rumored to be considering a bid for the acquisition.
August 24, 2023 | 1:31 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Cleveland-Cliffs' bid for U.S. Steel is supported by the workers union, which may influence the acquisition process.
The workers union's support for Cleveland-Cliffs' bid may influence the acquisition process in favor of CLF. This could potentially lead to a short-term increase in CLF's stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
ArcelorMittal is rumored to be considering a bid for U.S. Steel, which may impact its stock price.
The rumor of ArcelorMittal considering a bid for U.S. Steel introduces uncertainty, which may lead to neutral short-term impact on its stock price until more information is available.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 60
NEGATIVE IMPACT
U.S. Steel's acquisition process is affected by Esmark's withdrawal and potential bids from CLF and MT. The union's influence and the company's clarification on its labor agreement may impact investor sentiment.
The withdrawal of Esmark's bid and potential bids from other companies directly affect U.S. Steel's acquisition process. The union's influence and the company's stance on its labor agreement may sway investor sentiment, potentially leading to a short-term decrease in stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100