3.5200 0.00 (0.00%)
After hours: 5:14PM EST
|Bid||3.5000 x 36200|
|Ask||3.5100 x 28000|
|Day's Range||3.4300 - 3.5900|
|52 Week Range||1.6600 - 3.5900|
|Beta (5Y Monthly)||3.14|
|PE Ratio (TTM)||11.28|
|Earnings Date||Jan 27, 2020 - Jan 31, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||2.64|
Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC ("KSF") are investigating the proposed sale of AK Steel Holding Corporation (NYSE: AKS) to Cleveland-Cliffs Inc. (NYSE: CLF). Under the terms of the proposed transaction, shareholders of AK will receive only 0.40 shares of Cliffs for each share of AK that they own. KSF is seeking to determine whether this consideration and the process that led to it are adequate, or whether the consideration undervalues the Company.
Wall Street is slowly getting more bullish on mining stocks. Large mining stocks Barron’s tracks are down more than 50% from all-time highs, but the sector has bounced back some in 2019, up about 14% on average. The reason for improved sentiment is linked to iron ore and copper, two key metals for global miners.
WILMINGTON, Del., Dec. 10, 2019 -- Rigrodsky & Long, P.A. announces that it is investigating: AK Steel Holding Corporation (NYSE: AKS) regarding possible breaches of.
NEW YORK, Dec. 10, 2019 -- Halper Sadeh LLP, a global investor rights law firm, continues to investigate the following companies: Instructure, Inc. (NYSE: INST)The.
Cleveland-Cliffs surprised everyone with its plan to buy AK Steel. Whether investors like the transaction comes down to how they feel about Cleveland-Cliffs dynamic CEO Lourenco Goncalves.
News that Cleveland-Cliffs planned to buy AK Steel sent shares tumbling Tuesday, but the iron-ore miner may have hit a “home run” on the deal.
Juan Monteverde, founder and managing partner at Monteverde & Associates PC, a national securities firm headquartered at the Empire State Building in New York City, is investigating AK Steel Holding Corporation ("AK Steel" or the "Company") (Nasdaq: AKS) relating to the sale of the Company to Cleveland-Cliffs Inc. Under the terms of the Merger, each share of AK Steel common stock will be converted into the right to receive 0.400 shares of Cleveland-Cliffs common stock for each AK Steel common stock owned.
WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors (the "Board") of AK Steel Holding Corporation ("AK Steel" or the "Company") (NYSE:AKS) in connection with the proposed merger of the Company with Cleveland-Cliffs Inc. ("Cleveland-Cliffs") (NYSE:CLF). Under the terms of the merger agreement, AK Steel shareholders will receive a fixed exchange ratio of 0.40 CLF shares for each share of AKS common stock owned, for an implied value of $3.36 per share. CLF shareholders will own 68% of the combined company. The deal is scheduled to close in the first half of 2020.
Anticipated cost synergies associated with the AK Steel acquisition could reach $120 million per year. Here's what that may look like for the combined company.
AK Steel Holding Corporation (NYSE: AKS ) has entered into a definitive merger agreement with Cleveland-Cliffs Inc (NYSE: CLF ), in which the latter will acquire all the shares of the steelmaker. Cleveland-Cliffs’ ...
U.S. stocks are set to start the day in the green, rebounding after news that President Donald Trump might delay a U.S.-China trade deal until after the 2020 election roiled markets on Tuesday.
Shares of AK Steel Holding Corp. rallied Tuesday to a nine-month high, after the steel maker agreed to be bought out by iron ore mining company Cleveland-Cliffs Inc. in an all-stock deal valued at $1.1 billion.
Bragar Eagel & Squire, P.C., a nationally recognized stockholder law firm, has launched an investigation into whether the board members of AK Steel Holding Corporation (NYSE: AKS) breached their fiduciary duties or violated the federal securities laws in connection with the company's proposed sale to Cleveland-Cliffs Inc.
BALA CYNWYD, PA / ACCESSWIRE / December 3, 2019 / Law office of Brodsky & Smith, LLC announces that it is investigating potential claims against the Board of Directors of AK Steel Holding Corporation ("AK ...
Consolidation is usually a good thing in commodity-producing industries. But steel stocks are getting hammered after Cleveland-Cliffs announced plans to buy AK Steel.
Moody's Investors Service says AK Steel Holding Corporation's (AKS), parent of AK Steel Corporation (B2 Corporate Family Rating -- Stable outlook) announcement that it has entered into a definitive merger agreement with Cleveland-Cliffs Inc. (Cliffs - B1 Corporate Family Rating -- RUR down) under which Cliffs will acquire AKS in an all-stock transaction valued at around $1.1 billion on a fully dilutive basis is credit positive. The transaction is anticipated to be debt neutral.
Moody's Investors Service ("Moody's") placed all ratings of Cleveland- Cliffs Inc. (Cliffs) on review for downgrade, including the B1 Corporate Family Rating (CFR) and the B1-PD Probability of Default Rating (PDR). The review follows the announcement by Cliffs that it will acquire AK Steel Holding Corporation (AK Steel) in an all-stock transaction valued at approximately $1.1 billion on a fully diluted basis.
Cleveland-Cliffs Inc. announced its acquisition of AK Steel Holding Corp. (NYSE: AKS) Tuesday, and electric arc furnaces like the one at AK Steel’s Butler Works facility could be a primary driver of the deal. Richard Bourke, a Bloomberg Intelligence analyst who follows AK Steel, said the vertically integrated acquisition is intended to help Cliffs capture additional value across the steel supply chain. Cliffs president and CEO Lourenco Goncalves will lead the combined company, and AK Steel CEO Roger Newport will retire when the deal is finalized.
Rowley Law PLLC is investigating potential securities law violations by AK Steel Holding Corporation (NYSE: AKS) and its board of directors concerning the proposed acquisition of the company by Cleveland-Cliffs Inc. (NYSE: CLF). Stockholders will receive 0.40 shares of Cleveland-Cliffs common stock for each share of AK Steel stock that they hold. The transaction is valued at approximately $1.1 billion and is expected to close in the first half of 2020.
Iron ore miner Cleveland-Cliffs shocked the steel establishment with a surprise all-stock buyout of AK Steel. The move has AK Steel shares up in premarket trading while Cliffs shares are tumbling.
(Bloomberg Opinion) -- An otherwise fairly unremarkable Tuesday morning thankfully delivered one of the more memorable answers on an M&A call. Lourenco Goncalves, CEO of Cleveland-Cliffs Inc., was asked a sensible question about the risks around transfer pricing in the just-announced acquisition of AK Steel Corp., to which he delivered this bracing dose of honesty:It’s our company after we close, so we can do whatever we want at the end of the day.Except, of course, the “our” there includes the investors who own Cliffs. Some of them didn’t really agree with the spirit of Goncalves’s take. By midmorning in New York, Cliffs shares were down more than 12%, all but wiping out the premium AK Steel’s own shareholders were being offered in the all-stock deal. Indeed, the immediate winners here aren’t the shareholders of either company, but rather AK Steel’s bondholders.That question about transfer pricing was aimed at one of the main stated rationales for the deal: namely, that combining Cliffs’ iron-ore pellets business with AK Steel’s furnaces would boost the latter’s margins per ton. But that’s the age-old fallacy of vertical integration: Favorable pricing from one part of the merged business to another may optically boost profitability for one, but that comes at the expense of the other.To be fair, Goncalves went on to say people shouldn’t expect Cliffs to cross-subsidize in that way. Unfortunately, the market’s reaction suggests investors may be focused more on the “we can do whatever we want” bit.With the long-term benefits of vertical integration questionable, this deal looks more like an alloy of defensiveness and opportunism.AK Steel is under pressure on two fronts. First, almost two-thirds of its sales are tied to the automotive industry. That is a great business for any steelmaker — except when U.S. auto sales look set to plateau or decline and major overseas markets such as China are struggling already. Steel prices have dropped sharply from the tariff-induced highs of 2018.Second, the continued shift in market share toward electric-arc furnaces using recycled steel represents a structural problem for traditional producers such as AK Steel. This is also why Cliffs is investing in facilities producing more hot-briquetted iron, which targets arc furnaces. Wen Li, an analyst at CreditSights, points out that AK Steel’s leverage — net debt of 3.7 times adjusted Ebitda at the end of September —remained elevated even when steel pricing was good, and was likely to rise as automotive contracts get reset at lower prices.In buying AK Steel, therefore, Cliffs provides support — including refinancing of near-term debt maturities — to a major customer that accounted for a quarter of its product revenue in 2018. Hence, even as Cliffs’ stock plunged and AK Steel’s battered stock ticked up a little on Tuesday morning, the target’s bondholders were high-fiving:The opportunist aspect of the deal reflects AK Steel’s pricing. Cliffs has a literal moat in the form of its positioning in the Great Lakes region, shielding it from foreign competition. However, it also limits growth prospects; consensus forecasts imply earnings per share will fall almost 30% in 2020 and by 2022 will be merely flat with 2019’s level. Even if AK Steel’s vertical integration is of dubious benefit, it offers the possibility of cutting costs to boost the bottom line. At $120 million a year, the touted savings target equates to just under 40% of AK Steel’s trailing selling, general and administrative expenses, which seems like a reasonable target. Taxed, it would also boost pro-forma net income by 16%, all else equal. With the exchange ratio having halved since the start of 2018, that may have been too tempting for Cliffs to pass up.As it stands, against the notional $800 million or so of present value associated with such potential savings, almost $300 million has been wiped off the value of Cliffs’ stock. It doesn’t help that two commodity producers announced a surprise deal just as we are undergoing yet another trade tantrum. Neither does the questionable vertical-integration story. This will ultimately all come down to how much cost can really be cut. On that front, at least, investors will hope management does whatever it takes.To contact the author of this story: Liam Denning at email@example.comTo contact the editor responsible for this story: Mark Gongloff at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.