Speculating in Takeover Targets Message Board

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Strategies & Market Trends : Speculating in Takeover Targets

ULBI 6.865

-0.2%

10:31 AM EST

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E_K_S

Glenn Petersen

To: Fuzzy who wrote (5685)

8/14/2023 10:42:45 AM

From: richardred

2 Recommendations of 7242

CLF wants to scale its operations in a big way. Cash and stock offer for X US Steel.

PS
Cleveland-Cliffs to Buy AK Steel in $1.1 Billion Stock Swap >CLF AKS
6:15 am ET December 3, 2019 (Dow Jones) Print

By Colin Kellaher

Cleveland-Cliffs Inc. (CLF) Tuesday said it agreed to buy AK Steel Holding Corp. (AKS) in a stock swap valued at about $1.1 billion.

Cleveland-Cliffs said it will issue 0.4 shares, worth about $3.36 based on Monday's closing price of $8.41, for each AK Steel share.

The deal represents a roughly 16.3% premium to Monday's closing price of $2.89 for AK Steel, a West Chester, Ohio, steelmaker.

Cleveland-Cliffs said its shareholders will own about 68% of the combined company, while AK Steel shareholders will own about 32%.

The Cleveland iron-ore mining company said the transaction, which it expects to complete in the first half of 2020, implies a total enterprise value of about $3 billion for AK Steel.

To: Fuzzy who wrote (5685)	12/3/2019 1:35:21 PM
From: E_K_S	Read Replies (1) of 6708

I was surprised at the small market cap of each company. CLF $2.3 Bln vs AKS $0.9Bln and then compare that to LULU at $29Bln or even TSLA at $60Bln. Even MOS which mines & processes Potash around the world w/ $7Bln market cap. I wonder if US sees more consolidation in these old US manufacturers if/when we see the emergence of more manufacturing in the US. My thesis is in the next generation AI/Robot manufacturing, many of the old manufactures that come back to the US will reinvent themselves, consolidate/merge and run/operate this next generation manufacturing process. The other huge innovation will be smart logistics/warehouse systems tied to the new smart manufacturing plant. Already seeing this in NWL (w/ their 18 month restructure). The next result will be lots more mergers and consolidations and US manufactures reinvent their companies. CLF & AKS a straight forward merger. Others may not appear to be so obvious; NIKE & Footlocker and some other retailers along w/ super efficient make to order online distributed through Amazon. All made in the US by AI/Robots. It took almost 20 years to move old school manufactures into China and I guess 10 years to see much of that come back reinvented to the US. EKS

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