X - U.S. Steel: Focus On Falling Steel Prices Instead Of The Most Likely Dead Buyout
2024-06-17 10:14:45 ET
Summary
- The $55 cash per share Nippon deal to buy U.S. Steel Corp. is most likely dead, with an announcement expected in October.
- Spot steel prices have dropped in the current quarter.
- The value of U.S. Steel Corp. stock as an independent company is much lower than the current stock price.
Many U.S. Steel Corp. ( X ) investors are just focusing on the $55 cash per share buyout proposal by Nippon Steel ( NPSCY ) ( NISTF ) when buying the stock and are ignoring the drop in steel prices this quarter. The reality is that because of political reasons, the deal is most likely dead. Investors, therefore, need to value the stock as if U.S. Steel was to remain an independent company and that valuation is much lower than the current X stock price....
U.S. Steel: Focus On Falling Steel Prices Instead Of The Most Likely Dead Buyout