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OpinionColumnist
The Steel Mills That Built the World Face Decline
The battle for US Steel challenges the assumption that there’s no alternative to dirty, old blast furnaces.
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Steel transition.
Photographer: Megan Jelinger/AFP/Getty Images
By David Fickling
August 28, 2023 at 4:00 PM EDT
The takeover battle for US Steel Corp. is about more than the ignominious fall of the world’s first billion-dollar company. It’s also about the fate of the planet. The
Andrew Carnegie’s vast industrial enterprise churned out the beams, bars and plates that made America’s railways, skyscrapers and the military machine that helped win World War II. But the steelmaking technology that built the 20th century is clashing head-on with the challenges of preventing catastrophic climate change in the 21st century.
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Form 425 - Prospectuses and communications, business combinations
Source: Edgar (US Regulatory)
Commission File No.: 001-08944
pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12 under the Securities and Exchange Act of 1934Subject Company: United States Steel Corporation
Commission File No.: 001-16811
This filing relates to the proposal made by Cleveland-Cliffs Inc. (“Cliffs”) to the board of directors of United States Steel Corporation (“U.S. Steel”) to acquire all of the outstanding shares of U.S. Steel.
The following is a transcript of the CNBC interview of Cliffs’ Chairman, President and Chief Executive Officer, Lourenco Goncalves, on August 14, 2023 that was posted on Cliffs’ website on August 24, 2023.
CNBC: Squawk on the Street
August 14, 2023
CNBC: Let’s start first of all with U.S. Steel’s perspective, basically saying that you refused to sign a customary NDA that would have helped them assess the valuation of the stock component in your offer and the regulatory risk associated with the deal. Is that true, and if so, why deny them that NDA, which is seen as pretty customary in the M&A world?
Lourenco Goncalves: It’s not true. Actually, I was working diligently with my legal advisors to get to language that I could sign. But they were hard to move, and they were working from their position of delay tactics. They started with an 18-month standstill provision – that would be absurd. We were narrowing down the time for something more manageable. But then they were basically demanding that I would not talk to the USW. And talking to the USW is mandatory, because they have a provision in their labor agreement that gives the USW the opportunity, the possibility, to counteroffer any offer. So, I was able to clear that, preempt that, and I have full support of the USW, and they will not support anyone else other than Cleveland-Cliffs. So that's not something I can change – the past. So that's why I did not sign the NDA.
CNBC: Because you were still seeking government approvals. What was their rationale for not wanting you to go forward with that?
Lourenco Goncalves: We believe that we have a compelling case that the government should be not only approving, but enthusiastically supporting, this deal. We will finally have, after a few decades, a steelmaker that is among the top ten in the world. The steel business is a world business. Our main competitor is always imports and a lot of dumping, a lot of subsidies. Governments trying to chime into our markets. So we are finally having one that will be at the same level of ArcelorMittal and Nippon Steel and Posco and all the Koreans. And by the way, all these companies in the top ten, they were built based on mergers and acquisitions. The number one is Baowu. The Bao is Bao Steel from Shanghai, and the Wu is Wuhan from Wuhan City. So even in China they have mergers. ArcelorMittal is a merger between Arcelor and Mittal. And Arcelor by itself was a merger between Aceralia, Arbed and Usinor. So, I am using the playbook and I am extracting the synergies and creating jobs. Union jobs. That's a good thing for the country. That's a good thing for Cleveland-Cliffs.
CNBC: I want to follow up on the jobs aspect in just a minute. But in terms of the regulatory approval, this regulatory environment is notoriously difficult, relative to what's happened in the past. The combined share of exposed automotive steel would be over 50% of the market if this deal were to go through, according to Key Bank analysts, and it would also constitute more than 50% of the carbon sheet consumption. Both of those likely to present regulatory issues, especially in this current environment, no?
Lourenco Goncalves: You are using the wrong source. You are using someone that is not seeing the big picture. If you narrow down the geographical area, you’re going to say that here in Cleveland I have 100% because there is only one steel mill and I own that mill. But the problem is that the market is not just the United States. We compete against steel coming from South Korea. We compete against steel coming
from Japan. The transplants like the steel from Japan. The transplants from Korea like the steel from Korea. Same thing with the Germans. The specifications are written abroad. Even companies that are members of the Detroit Three, one of them has headquarters in Europe. So the fight is in a much bigger geography, and in that regard we are very small, even after the merger. Another thing is that not only steel – a lot of the materials used in a car, for exposed parts, for doors, for roofs, for ceilings, for everything that you see in a car on the outside, the exposed parts, are aluminum. I drive a car that the outside is aluminum, not steel. So, we have to compete against alternate materials, and no car manufacturer is shy to replace steel with other materials if they can. So we need to have scale, we need to be able to compete, we need to continue to create jobs in the United States, and that’s what we are doing.
CNBC: The street sort of looked askance at the free cash flow profile of U.S. Steel versus you, Lourenco, and some wonder why – what they have to offer you. Are you characterizing them as sort of beachfront property, or is this sort of a gut job you would have to renovate?
Lourenco Goncalves: I think U.S. Steel’s a great company. I believe that the management is doing a phenomenal job in terms of creating the basis for what we are going to assume. Because this deal will close. We are going to buy. We are going to be able to finish the deal. And with the support of the USW we’re going to have an American champion, among the top ten in the world. But as far as cash flow, we provide them with more than cash flow. We have cash flow. They have cash expenditures to finish their construction, which of course we will do. And we will use our cash to help them de-risk their capex program. But most importantly, we are going to have the ability to support the mini-mill with our scrap company. They don't have that. We will bring that. We will support their blast furnaces with our HBI. They don't have that. We have that. So it's a really synergetic deal. $500 million dollars is kind of a conservative number. We are going to pass that number.
CNBC: What gives you the confidence that this deal will close, Lourenco? Now U.S. Steel basically has a for sale sign up saying they're assessing strategic alternatives. Would you consider doing an all-cash deal, and what has to take place from this point forward to get this deal closed?
Lourenco Goncalves: Leslie, it’s Lourenco by the way. But anyway, certainty that the deal will close is because the USW, the union, has a clause in their labor agreement with U.S. Steel that gives the union the ability to counter any offer if they don't like the company that's trying to acquire a portion or the entire company. And they put it in writing, and I’ve made it public, that they will exercise the right, if U.S. Steel shops the deal and comes up with another deal. And by the way, we have a premium of 43%. My offer is more than reasonable. It’s a rich offer. So, I believe that the company is worth what I offered. I am not doing any favors to them. But this is a deal for people that understand M&A, not people that hide behind consultants, not people that talk about the regulators, and they don't have a clue how to deal with the regulators. My track record, I approved two deals in the last three years. I acquired AK Steel, I passed with flying colors. I acquired ArcelorMittal a few months later, both in 2020. And you could not find one person who would say that deal would get approved, and we passed without second review. We understand the process. We have experience. Our attorneys are well prepared. We have an economist on retainer that is someone that has done that for us several times. We are fully confident that we are going to continue to generate jobs, and that's a very important portion that people neglect. Our track record is we acquired two companies and instead of shrinking the workforce, we increased the size of the workforce by 1,700 employees. Revenues went from $2 billion in 2019 to $23 billion in 2022. Pro forma, we will be $44 billion. We are happy with the size. I don't think we are going to be done at number ten, but being number ten in the world is a good start for the United States of America.
CNBC: So then Lourenco, just real quickly, one more quick question for you. [Unintelligible dialogue.] The offer that is on the table. Is that your final offer? Are you willing to go back to the table to negotiate from here?
Lourenco Goncalves: I negotiate with the other party. I don't negotiate through the press. But I appreciate the opportunity to not only explain the deal but also to say loud and clear that our partnership with the USW, the union, is iron clad. There is no daylight between myself and Tom Conway. He’s my partner, and we are going to do this together. This is a deal for the shareholders of Cleveland-Cliffs, the bondholders of Cleveland-Cliffs, the workforce of Cleveland-Cliffs, and the unions represented by Cleveland-Cliffs – including the USW, the UAW, the IAM – all my partners.
CNBC: Well, the market seems to hear your compelling rationale loud and clear. Cleveland-Cliffs shares up more than 5%, largely over the course of this interview. So we appreciate it, Lourenco, thank you for being here and thank you for sharing your perspective. We will be following this one closely from here on out.
Lourenco Goncalves: OK, thank you very much, Lourdes.
Forward Looking Statements
This communication and any accompanying materials may contain statements that constitute “forward-looking statements” within the meaning of the federal securities laws. All statements other than historical facts, including, without limitation, statements regarding our current expectations, estimates and projections about our industry, our business or a transaction with U.S. Steel, are forward-looking statements. We caution investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements. Investors are cautioned not to place undue reliance on forward-looking statements. Among the risks and uncertainties that could cause actual results to differ from those described in forward-looking statements are the following: the risk that a transaction with U.S. Steel may not be consummated; the risk that a transaction with U.S. Steel may be less accretive than expected, or may be dilutive, to Cliffs’ earnings per share, which may negatively affect the market price of Cliffs common shares; the possibility that Cliffs and U.S. Steel will incur significant transaction and other costs in connection with a potential transaction, which may be in excess of those anticipated by Cliffs; the risk that the financing transactions to be undertaken in connection with a transaction have a negative impact on the combined company’s credit profile or financial condition; the risk that Cliffs may fail to realize the benefits expected from a transaction; the risk that the combined company may be unable to achieve anticipated synergies or that it may take longer than expected to achieve those synergies; the risk that any announcements relating to, or the completion of, a transaction could have adverse effects on the market price of Cliffs common shares; and the risk related to any unforeseen liability and future capital expenditure of Cliffs related to a transaction.
For additional factors affecting the business of Cliffs, refer to Part I – Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2022, and other filings with the U.S. Securities and Exchange Commission (the “SEC”).
Important Information for Investors and Shareholders
This communication relates to a proposal that Cliffs has made for an acquisition of U.S. Steel. In furtherance of this proposal and subject to future developments, Cliffs may file one or more registration statements, proxy statements, tender offer statements or other documents with the SEC. This communication is not a substitute for any proxy statement, registration statement, tender offer statement or other document Cliffs may file with the SEC in connection with the proposed transaction.
Investors and security holders of Cliffs are urged to read the proxy statement(s), registration statement, tender offer statement and/or other documents filed with the SEC carefully in their entirety if and when they become available, as they will contain important information about the proposed transaction. Any definitive proxy statement(s) (if and when available) will be mailed to shareholders of Cliffs. Investors and security holders will be able to obtain free copies of these documents (if and when available) and other documents filed with the SEC by Cliffs through the website maintained by the SEC at http://www.sec.gov.
This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
This communication is neither a solicitation of a proxy nor a substitute for any proxy statement or other filing that may be made with the SEC. Nonetheless, Cliffs and its directors and certain of its executive officers may be considered participants in the solicitation of proxies in connection with the proposed transaction. Information about the directors and executive officers of Cliffs is set forth in its Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the SEC on February 14, 2023, and its proxy statement for its 2023 annual meeting of shareholders, which was filed with the SEC on April 3, 2023.
Any information concerning U.S. Steel contained in this communication has been taken from, or based upon, publicly available information. Although Cliffs does not have any information that would indicate that any information contained in this communication that has been taken from such documents is inaccurate or incomplete, Cliffs does not take any responsibility for the accuracy or completeness of such information. To date, Cliffs has not had access to the books and records of U.S. Steel.
Cleveland-Cliffs alone again in bidding for U.S. Steel
U.S. Steel’s taconite plant in Keewatin
— Richard Tsong-Taatarii, Star Tribune file
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Listen
REUTERS
August 23, 2023 - 4:16 PM
Privately held steel company Esmark said on Wednesday it was scrapping its bid for U.S Steel Corp, respecting the United Steel Workers' support of rival Cleveland-Cliffs.
Last week, Esmark made an offer to buy U.S. Steel for $35 per share, or an equity value of $7.8 billion.
Esmark's exit leaves Arcelor-Mittal as the only known potential challenger to Cleveland-Cliffs, which went public with its bid for U.S. Steel earlier in August.
"The U.S. Steel board must go through their process that they previously announced (adding) we will evaluate any opportunities in connection with that process, subject to support from the USW," Esmark CEO Jim Bouchard said in a statement.
USW, which has asserted itself aggressively in the bidding battle, had said the union would not endorse any buyers other than Cleveland-Cliffs.
However, U.S. Steel last week said its labor agreement with USW does not afford the union the right to veto a sale of the company.
The future of U.S. Steel is important to Minnesota's Iron Range, where the major player is Cleveland-Cliffs, followed by U.S. Steel.
Form 8-K - Current report
Source: Edgar (US Regulatory)
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 22, 2023
CLEVELAND-CLIFFS INC.
(Exact name of registrant as specified in its charter)
Ohio1-894434-1464672(State or Other Jurisdiction of Incorporation or Organization)(Commission File Number)(IRS Employer Identification No.)
200 Public Square,Suite 3300,Cleveland,Ohio44114-2315(Address of Principal Executive Offices)(Zip Code)
Registrant's telephone number, including area code: (216) 694-5700
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
?Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)?Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)?Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))?Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:Title of each classTrading Symbol(s)Name of each exchange on which registered:Common Shares, par value $0.125 per shareCLFNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (Section 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (Section 240.12b-2 of this chapter).
Emerging growth company?
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ?
Item 8.01.Other Events.
On August 22, 2023, Cleveland-Cliffs Inc. (the “Company”) delivered to United States Steel Corporation (“U.S. Steel”) a letter demanding that U.S. Steel comply with U.S. Steel's obligations under the Right to Bid provisions of its Basic Labor Agreement, which the United Steelworkers assigned to the Company in connection with offers to acquire U.S. Steel. A copy of the letter, attached hereto as Exhibit 99.1, is incorporated herein by reference.
Forward Looking Statements
This report and the accompanying materials may contain statements that constitute “forward-looking statements” within the meaning of the federal securities laws. All statements other than historical facts, including, without limitation, statements regarding our current expectations, estimates and projections about our industry, our business or a transaction with U.S. Steel, are forward-looking statements. We caution investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements. Investors are cautioned not to place undue reliance on forward-looking statements. Among the risks and uncertainties that could cause actual results to differ from those described in forward-looking statements are the following: the risk that a transaction with U.S. Steel may not be consummated; the risk that a transaction with U.S. Steel may be less accretive than expected, or may be dilutive, to Cliffs’ earnings per share, which may negatively affect the market price of Cliffs common shares; the possibility that Cliffs and U.S. Steel will incur significant transaction and other costs in connection with a potential transaction, which may be in excess of those anticipated by Cliffs; the risk that the financing transactions to be undertaken in connection with a transaction have a negative impact on the combined company’s credit profile or financial condition; the risk that Cliffs may fail to realize the benefits expected from a transaction; the risk that the combined company may be unable to achieve anticipated synergies or that it may take longer than expected to achieve those synergies; the risk that any announcements relating to, or the completion of, a transaction could have adverse effects on the market price of Cliffs common shares; and the risk related to any unforeseen liability and future capital expenditure of Cliffs related to a transaction.
For additional factors affecting the business of Cliffs, refer to Part I – Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2022, and other filings with the U.S. Securities and Exchange Commission (the “SEC”).
Important Information for Investors and Shareholders
This report relates to a proposal that Cliffs has made for an acquisition of U.S. Steel. In furtherance of this proposal and subject to future developments, Cliffs may file one or more registration statements, proxy statements, tender offer statements or other documents with the SEC. This report is not a substitute for any proxy statement, registration statement, tender offer statement or other document Cliffs may file with the SEC in connection with the proposed transaction.
Investors and security holders of Cliffs are urged to read the proxy statement(s), registration statement, tender offer statement and/or other documents filed with the SEC carefully in their entirety if and when they become available, as they will contain important information about the proposed transaction. Any definitive proxy statement(s) (if and when available) will be mailed to shareholders of Cliffs. Investors and security holders will be able to obtain free copies of these documents (if and when available) and other documents filed with the SEC by Cliffs through the website maintained by the SEC at http://www.sec.gov.
This report shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
This report is neither a solicitation of a proxy nor a substitute for any proxy statement or other filing that may be made with the SEC. Nonetheless, Cliffs and its directors and certain of its executive officers may be considered participants in the solicitation of proxies in connection with the proposed transaction. Information about the directors and executive officers of Cliffs is set forth in its Annual Report on Form 10-K for the year ended December 31, 2022,
2
which was filed with the SEC on February 14, 2023, and its proxy statement for its 2023 annual meeting of shareholders, which was filed with the SEC on April 3, 2023.
Any information concerning U.S. Steel contained in this report has been taken from, or based upon, publicly available information. Although Cliffs does not have any information that would indicate that any information contained in this report that has been taken from such documents is inaccurate or incomplete, Cliffs does not take any responsibility for the accuracy or completeness of such information. To date, Cliffs has not had access to the books and records of U.S. Steel.
Item 9.01.Financial Statements and Exhibits.
Exhibit
NumberDescription
99.1
Cleveland-Cliffs Inc. letter to United States Steel Corporation, dated August 22, 2023.101Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.104The cover page from this Current Report on Form 8-K, formatted as Inline XBRL.
3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
CLEVELAND-CLIFFS INC.Date:August 22, 2023By:/s/ James D. GrahamName:James D. GrahamTitle:Executive Vice President, Human Resources, Chief Legal and Administrative Officer & Secretary
4
?
EXHIBIT 99.1
?
Forward Looking Statements This communication and the accompanying materials may contain statements that constitute “forward-looking statements” within the meaning of the federal securities laws. All statements other than historical facts, including, without limitation, statements regarding our current expectations, estimates and projections about our industry, our business or a transaction with U.S. Steel, are forward-looking statements. We caution investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements. Investors are cautioned not to place undue reliance on forward-looking statements. Among the risks and uncertainties that could cause actual results to differ from those described in forward-looking statements are the following: the risk that a transaction with U.S. Steel may not be consummated; the risk that a transaction with U.S. Steel may be less accretive than expected, or may be dilutive, to Cliffs’ earnings per share, which may negatively affect the market price of Cliffs common shares; the possibility that Cliffs and U.S. Steel will incur significant transaction and other costs in connection with a potential transaction, which may be in excess of those anticipated by Cliffs; the risk that the financing transactions to be undertaken in connection with a transaction have a negative impact on the combined company’s credit profile or financial condition; the risk that Cliffs may fail to realize the benefits expected from a transaction; the risk that the combined company may be unable to achieve anticipated synergies or that it may take longer than expected to achieve those synergies; the risk that any announcements relating to, or the completion of, a transaction could have adverse effects on the market price of Cliffs common shares; and the risk related to any unforeseen liability and future capital expenditure of Cliffs related to a transaction. For additional factors affecting the business of Cliffs, refer to Part I – Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2022, and other filings with the U.S. Securities and Exchange Commission (the “SEC”). Important Information for Investors and Shareholders This communication relates to a proposal that Cliffs has made for an acquisition of U.S. Steel. In furtherance of this proposal and subject to future developments, Cliffs may file one or more registration statements, proxy statements, tender offer statements or other documents with the SEC. This communication is not a substitute for any proxy statement, registration statement, tender offer statement or other document Cliffs may file with the SEC in connection with the proposed transaction. Investors and security holders of Cliffs are urged to read the proxy statement(s), registration statement, tender offer statement and/or other documents filed with the SEC carefully in their entirety if and when they become available, as they will contain important information about the proposed transaction. Any definitive proxy statement(s) (if and when available) will be mailed to shareholders of Cliffs. Investors and security holders will be able to obtain free copies of these documents (if and when available) and other documents filed with the SEC by Cliffs through the website maintained by the SEC at http://www.sec.gov. This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. This communication is neither a solicitation of a proxy nor a substitute for any proxy statement or other filing that may be made with the SEC. Nonetheless, Cliffs and its directors and certain of its executive officers may be considered participants in the solicitation of proxies in connection with the proposed transaction. Information about the directors and executive officers of Cliffs is set forth in its Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the SEC on February 14, 2023, and its proxy statement for its 2023 annual meeting of shareholders, which was filed with the SEC on April 3, 2023. Any information concerning U.S. Steel contained in this communication has been taken from, or based upon, publicly available information. Although Cliffs does not have any information that would indicate that any information contained in this communication that has been taken from such documents is inaccurate or incomplete, Cliffs does not take any responsibility for the accuracy or completeness of such information. To date, Cliffs has not had access to the books and records of U.S. Steel.
Cover Document
Aug. 22, 2023
Cover [Abstract] Document Type8-KDocument Period End DateAug. 22, 2023Entity Registrant NameCLEVELAND-CLIFFS INC.Entity Incorporation, State or Country CodeOHEntity File Number1-8944Entity Tax Identification Number34-1464672Entity Address, Address Line One200 Public Square,Entity Address, Address Line TwoSuite 3300,Entity Address, City or TownCleveland,Entity Address, State or ProvinceOHEntity Address, Postal Zip Code44114-2315City Area Code216Local Phone Number694-5700Written CommunicationstrueSoliciting MaterialtruePre-commencement Tender OfferfalsePre-commencement Issuer Tender OfferfalseTitle of 12(b) SecurityCommon Shares, par value $0.125 per shareTrading SymbolCLFSecurity Exchange NameNYSEEntity Emerging Growth CompanyfalseEntity Central Index Key0000764065Amendment Flagfalse
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Analysts Offer Insights on Technology Companies: Rumble (RUM) and Allego (ALLG)
TipRanks
Aug. 21, 2023, 07:00 AM
There’s a lot to be optimistic about in the Technology sector as 2 analysts just weighed in on Rumble (RUM – Research Report) and Allego (ALLG – Research Report) with bullish sentiments.
Rumble (RUM)
In a report released today, Tom Forte from D.A. Davidson reiterated a Buy rating on Rumble, with a price target of $10.00. The company’s shares closed last Friday at $7.02, close to its 52-week low of $5.81.
According to TipRanks.com, Forte is a 5-star analyst with an average return of 14.4% and a 51.0% success rate. Forte covers the Technology sector, focusing on stocks such as CuriosityStream, Pinterest, and System1.
Rumble has an analyst consensus of Moderate Buy, with a price target consensus of $10.00.
See Insiders’ Hot Stocks on TipRanks >>
Allego (ALLG)
D.A. Davidson analyst Matt Summerville maintained a Buy rating on Allego today and set a price target of $7.50. The company’s shares closed last Friday at $2.38, close to its 52-week low of $1.85.
According to TipRanks.com, Summerville is a 4-star analyst with an average return of 7.7% and a 45.5% success rate. Summerville covers the Industrial Goods sector, focusing on stocks such as A. O. Smith Corporation, Alta Equipment Group, and Columbus Mckinnon.
Currently, the analyst consensus on Allego is a Moderate Buy with an average price target of $7.75.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
Read More on RUM:
Form 425 - Prospectuses and communications, business combinations
Source: Edgar (US Regulatory)
Commission File No.: 001-08944
pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12 under the Securities and Exchange Act of 1934Subject Company: United States Steel Corporation
Commission File No.: 001-16811
This report and the accompanying materials contain statements that constitute “forward-looking statements” within the meaning of the federal securities laws. All statements other than historical facts, including, without limitation, statements regarding our current expectations, estimates and projections about our industry, our business or a transaction with U.S. Steel, are forward-looking statements. We caution investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements. Investors are cautioned not to place undue reliance on forward-looking statements. Among the risks and uncertainties that could cause actual results to differ from those described in forward-looking statements are the following: the risk that a transaction with U.S. Steel may not be consummated; the risk that a transaction with U.S. Steel may be less accretive than expected, or may be dilutive, to Cliffs’ earnings per share, which may negatively affect the market price of Cliffs common shares; the possibility that Cliffs and U.S. Steel will incur significant transaction and other costs in connection with a potential transaction, which may be in excess of those anticipated by Cliffs; the risk that the financing transactions to be undertaken in connection with a transaction have a negative impact on the combined company’s credit profile or financial condition; the risk that Cliffs may fail to realize the benefits expected from a transaction; the risk that the combined company may be unable to achieve anticipated synergies or that it may take longer than expected to achieve those synergies; the risk that any announcements relating to, or the completion of, a transaction could have adverse effects on the market price of Cliffs common shares; and the risk related to any unforeseen liability and future capital expenditure of Cliffs related to a transaction.
For additional factors affecting the business of Cliffs, refer to Part I – Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2022, and other filings with the U.S. Securities and Exchange Commission (the “SEC”).
Important Information for Investors and Shareholders
This report relates to a proposal that Cliffs has made for an acquisition of U.S. Steel. In furtherance of this proposal and subject to future developments, Cliffs may file one or more registration statements, proxy statements, tender offer statements or other documents with the SEC. This report is not a substitute for any proxy statement, registration statement, tender offer statement or other document Cliffs may file with the SEC in connection with the proposed transaction.
Investors and security holders of Cliffs are urged to read the proxy statement(s), registration statement, tender offer statement and/or other documents filed with the SEC carefully in their entirety if and when they become available, as they will contain important information about the proposed transaction. Any definitive proxy statement(s) (if and when available) will be mailed to shareholders of Cliffs. Investors and security holders will be able to obtain free copies of these documents (if and when available) and other documents filed with the SEC by Cliffs through the website maintained by the SEC at http://www.sec.gov.
This report shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
This report is neither a solicitation of a proxy nor a substitute for any proxy statement or other filing that may be made with the SEC. Nonetheless, Cliffs and its directors and certain of its executive officers may be considered participants in the solicitation of proxies in connection with the proposed transaction. Information about the directors and executive officers of Cliffs is set forth in its Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the SEC on February 14, 2023, and its proxy statement for its 2023 annual meeting of shareholders, which was filed with the SEC on April 3, 2023.
Any information concerning U.S. Steel contained in this report has been taken from, or based upon, publicly available information. Although Cliffs does not have any information that would indicate that any information contained in this report that has been taken from such documents is inaccurate or incomplete, Cliffs does not take any responsibility for the accuracy or completeness of such information. To date, Cliffs has not had access to the books and records of U.S. Steel.
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Rumble Releases New App For Samsung Smart TVs
Source: GlobeNewswire Inc.?
– Rumble, the video-sharing platform (NASDAQ: RUM), announced the release of its new Samsung Smart TV app, which features 24/7 live streams and on-demand content from Rumble creators. Users can download the app and watch a wide variety of video content, including viral videos, popular political pundits, hip-hop and gaming icons, exclusive podcasts, cute pet videos, and more. Along with Apple TV, Roku, Amazon Fire TV, and LG Smart TVs, the Samsung TV app allows users another way to watch Rumble on their televisions.
"The Samsung TV app is an expansion of our ability to deliver content anywhere," said Rumble Chairman and CEO Chris Pavlovski. “Video distribution is not only essential to the creator economy on the Rumble platform but also provides an enhanced experience for our viewers," he added.
With the free Samsung TV app, you can stream the biggest live events, exclusively on Rumble, including the first 2024 Republican Presidential Primary Republican Debate. Watch democracy in action starting Wednesday, August 23rd at 9 p.m. ET and follow the latest debate news on Rumble.
ABOUT RUMBLE
Rumble is a high-growth video platform that is creating the rails and independent infrastructure designed to be immune to cancel culture. Rumble’s mission is to restore the internet to its roots by making it free and open once again. For more information, visit: https://corp.rumble.com.
Contact: press@rumble.com
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Form 425 - Prospectuses and communications, business combinations
Source: Edgar (US Regulatory)
Commission File No.: 001-08944
pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12 under the Securities and Exchange Act of 1934Subject Company: United States Steel Corporation
Commission File No.: 001-16811
This filing relates to the proposal made by Cleveland-Cliffs Inc. (“Cliffs”) to the board of directors of United States Steel Corporation (“U.S. Steel”) to acquire all of the outstanding shares of U.S. Steel.
The following is an article published on Bloomberg News on August 15, 2023 that was posted on Cliffs’ website on August 15, 2023.
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Forward Looking Statements
This report and the accompanying materials contain statements that constitute “forward-looking statements” within the meaning of the federal securities laws. All statements other than historical facts, including, without limitation, statements regarding our current expectations, estimates and projections about our industry, our business or a transaction with U.S. Steel, are forward-looking statements. We caution investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements. Investors are cautioned not to place undue reliance on forward-looking statements. Among the risks and uncertainties that could cause actual results to differ from those described in forward-looking statements are the following: the risk that a transaction with U.S. Steel may not be consummated; the risk that a transaction with U.S. Steel may be less accretive than expected, or may be dilutive, to Cliffs’ earnings per share, which may negatively affect the market price of Cliffs common shares; the possibility that Cliffs and U.S. Steel will incur significant transaction and other costs in connection with a potential transaction, which may be in excess of those anticipated by Cliffs; the risk that the financing transactions to be undertaken in connection with a transaction have a negative impact on the combined company’s credit profile or financial condition; the risk that Cliffs may fail to realize the benefits expected from a transaction; the risk that the combined company may be unable to achieve anticipated synergies or that it may take longer than expected to achieve those synergies; the risk that any announcements relating to, or the completion of, a transaction could have adverse effects on the market price of Cliffs common shares; and the risk related to any unforeseen liability and future capital expenditure of Cliffs related to a transaction.
For additional factors affecting the business of Cliffs, refer to Part I – Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2022, and other filings with the U.S. Securities and Exchange Commission (the “SEC”).
Important Information for Investors and Shareholders
This report relates to a proposal that Cliffs has made for an acquisition of U.S. Steel. In furtherance of this proposal and subject to future developments, Cliffs may file one or more registration statements, proxy statements, tender offer statements or other documents with the SEC. This report is not a substitute for any proxy statement, registration statement, tender offer statement or other document Cliffs may file with the SEC in connection with the proposed transaction.
Investors and security holders of Cliffs are urged to read the proxy statement(s), registration statement, tender offer statement and/or other documents filed with the SEC carefully in their entirety if and when they become available, as they will contain important information about the proposed transaction. Any definitive proxy statement(s) (if and when available) will be mailed to shareholders of Cliffs. Investors and security holders will be able to obtain free copies of these documents (if and when available) and other documents filed with the SEC by Cliffs through the website maintained by the SEC at http://www.sec.gov.
This report shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
This report is neither a solicitation of a proxy nor a substitute for any proxy statement or other filing that may be made with the SEC. Nonetheless, Cliffs and its directors and certain of its executive officers may be considered participants in the solicitation of proxies in connection with the proposed transaction. Information about the directors and executive officers of Cliffs is set forth in its Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the SEC on February 14,
2023, and its proxy statement for its 2023 annual meeting of shareholders, which was filed with the SEC on April 3, 2023.
Any information concerning U.S. Steel contained in this report has been taken from, or based upon, publicly available information. Although Cliffs does not have any information that would indicate that any information contained in this report that has been taken from such documents is inaccurate or incomplete, Cliffs does not take any responsibility for the accuracy or completeness of such information. To date, Cliffs has not had access to the books and records of U.S. Steel.
Cleveland-Cliffs’ (NYSE:CLF) $7.3 billion bid was rejected. Bouchard was revealed to have $10 billion in cash, with no debt at Esmark. He receives advice from an undisclosed international bank. US Steel invited Esmark to join the negotiation process.
Wednesday’s Wall Street Highlights: Intel, VinFast, Coherent, DLocal, Nu, Target, and more
Source: IH Market News
US index futures were broadly flat in premarket trading on Wednesday as traders await indicators such as Federal Reserve minutes and industrial production.
By 6:53 AM, Dow Jones futures (DOWI:DJI) were up 3 points, or 0.01%. S&P 500 futures were up 0.01% and Nasdaq-100 futures were up 0.06%. The 10-year Treasury yield was at 4.186%.
On Wednesday’s US economic agenda, investors will follow at 8:30 am the preliminary building permit for July, which is projected to have 1.46 million new orders. At 9:15 am, the industrial production data for July will be released, with the consensus predicting an increase of 0.30% on a monthly basis. At 10:30 am, the EIA releases last week’s oil inventories, which are projected to drop by 2.5 million barrels.
The great expectation of the day is for the minutes of the last meeting of the Open Market Committee (FOMC), which will be released at 2 pm. At its July meeting, the Fed raised interest rates to a range between 5.25% and 5.50%. The expectation on the part of investors is that the document will bring clues about the trajectory of interest rates, after the publication of recent data that are used as benchmarks for monetary policy.
Mortgage rates in the US hit a 22-year high, resulting in a 29% year-on-year drop in application volume. The 30-year average interest rate rose to 7.16%. Demand for new homes has increased, particularly among first-time buyers, driven by low-down payment options. Refinances have dropped due to rising rates.
In the UK, July inflation fell by 0.4% monthly, less than the forecast 0.5%. However, core inflation increased by 0.3%, beating the estimate of 0.2%. These figures raise concerns that the Bank of England could raise interest rates.
In the euro zone, GDP grew by 0.3% in the second quarter compared to the previous quarter, in line with expectations. Annual growth was 0.6%. Contrary to forecasts of a 0.10% decline, industrial production in June increased by 0.5% month-on-month.
In Asian markets, the declines reflect concerns about China’s economy, given recent disappointing numbers. In addition, JP Morgan (NYSE:JPM) raised its forecast for corporate defaults in emerging markets due to fears related to the Chinese real estate sector, compounded by the financial difficulties of Garden Country.
In the commodities market, West Texas Intermediate crude for September fell -0.01% at $80.98 a barrel. Brent crude for October fell 0.07% near $84.83 a barrel. Iron ore futures traded in Dalian, China, were up 0.52% at $100.95 a tonne.
At the close of Tuesday, global financial markets started the day on a downward trend, a trend that persisted until the end of the session. European stock markets reacted negatively to local economic indicators and tensions with China. The British job market showed robust figures, raising concerns about possible increases or maintenance of high interest rates. In China, retail sales and industrial production disappointed, prompting the PBoC to cut interest rates.
In the US, indexes took big losses for similar reasons. Retail sales beat expectations, while the NY Fed’s Empire Manufacturing Index signaled a sharp decline in August. The Dow closed with a loss of 361.24 points or 1.02% at 34,946.39 points. The S&P 500 closed down 51.86 points, or 1.16%, at 4,437.86 points, and the Nasdaq Composite lost 157.28 points, or 1.14%, at 13,631.05.
Ahead of Wednesday’s corporate results, traders are watching reports from Target (NYSE:TGT), Zim (NYSE:ZIM), JD.com (NASDAQ:JD), TJX (NYSE:TJX). After the close, results will be announced for Cisco Systems (NASDAQ:CSCO), Synopsys (NASDAQ:SNPS), Wolfspeed (NYSE:WOLF), Stone (NASDAQ:STNE), Paycor (NASDAQ:PYCR), among others.
Wall Street Corporate Highlights for Today
Apple (NASDAQ:AAPL) – Apple will start production of the iPhone 15 in Tamil Nadu, diversifying its manufacturing outside of China. Seeking to speed up deliveries, the company reduced the difference between Indian and Chinese operations. In addition to Foxconn, Pegatron and Wistron will also assemble the iPhone 15 in India. Apple expands its presence in India, benefiting from government incentives and sees a growing market.
Amazon (NASDAQ:AMZN) – Amazon Pharmacy will automatically apply discounts on over 15 insulin and diabetes medications. Patients will no longer need to manually enter manufacturer coupons. The aim is to facilitate access to insulin at reduced prices.
Intel (NASDAQ:INTC), Tower Semiconductor (NASDAQ:TSEM) – Intel and Tower Semiconductor ended a proposed $5.4 billion deal due to lack of regulatory approvals. Tower shares were down more than 10% in premarket trading on Wednesday. Intel will pay Tower a $353 million termination fee. US-China tensions impact tech deals. Pat Gelsinger, CEO of Intel, sought approval for the deal in China and said Intel will continue to invest in its foundry business. Intel’s foundry sales have grown, but demand for the chips has declined.
Nvidia (NASDAQ:NVDA) – Shares of Nvidia rose on Tuesday after two brokerages raised their price targets. The high reflects optimism with artificial intelligence and the demand for its components. Analysts raised price estimates ahead of Nvidia’s quarterly results. The company predicts higher revenue due to demand for its AI chips, like those used in ChatGPT.
ASML (NASDAQ:ASML) – Samsung halved its stake in ASML Holding NV in Q2, selling 3.55 million shares, raising $2.2 billion. Samsung plans to strengthen its chip manufacturing, rivaling Taiwan Semiconductor Manufacturing Co (TSM).
VinFast (NASDAQ:VFS) – Vietnamese electric vehicle maker VinFast soared on the Nasdaq, doubling its valuation to $85 billion, outpacing Ford and GM. The debut followed a merger with SPAC Black Spade. Despite initial slow sales, the company plans to expand and revise its distribution strategy. VinFast is developing a $4 billion factory in North Carolina and faces competition from Tesla and Chinese companies.
Thomson Reuters (NYSE:TRI), The New York Times (NYSE:NYT) – Company X, formerly Twitter, has temporarily delayed access to links from sites such as Reuters and The New York Times. The delay was noted and then removed. The action comes after Elon Musk, new owner, criticized certain news organizations. The cause of the delay remains unclear.
Occidental Petroleum (NYSE:OXY) – Occidental Petroleum has acquired technology provider Carbon Engineering for $1.1 billion to develop carbon capture sites. Direct air capture technology aims to remove CO2 from the atmosphere for various uses, such as in the manufacture of concrete and fuel.
Woodside Energy (NYSE:WDS) – Woodside Energy reports “positive progress” in wage disputes at its LNG facility in Australia, while unions indicate significant differences. Around 99% of offshore workers voted for union actions, which could affect LNG shipments and prices.
Chevron (NYSE:CVX) – Negotiations between Chevron, Woodside Energy (NYSE:WDS) and Australian unions on wages and conditions at LNG facilities may take time due to the need for unions to consult their members. Workers at several facilities consider the possibility of industrial actions, including strikes. Experts see low risk of prolonged outages.
US Steel (NYSE:X) – Esmark Inc CEO James Bouchard said he had the funds for US Steel Corp’s $7.8 billion bid after Cleveland-Cliffs’ (NYSE:CLF) $7.3 billion bid was rejected. Bouchard was revealed to have $10 billion in cash, with no debt at Esmark. He receives advice from an undisclosed international bank. US Steel invited Esmark to join the negotiation process.
TPG Inc (NASDAQ:TPG) – The TPG Capital group has expressed interest in buying a stake in Ernst & Young (EY) consultancy, according to the Financial Times. After regulatory concerns, EY considered splitting its audit and consulting units, but later abandoned the idea.
BlackRock (NYSE:BLK) – Investors such as BlackRock and Allianz own significant holdings in Country Garden, the Chinese real estate company facing default risk. Although records show large exhibitions, holdings may have changed. The company’s potential default could impact Chinese debt markets.
UBS (NYSE:UBS) – A court in Moscow has banned UBS and Credit Suisse from selling shares in their Russian branches following a request from Zenit Bank, which fears losses if they exit Russia over a 2021 loan related to Intergrain and subsequent sanctions.
Goldman Sachs (NYSE:GS) – Senior managers at Goldman Sachs openly criticized CEO David Solomon. John Waldron, chairman of Goldman, became the focus of attention, pressured to decide whether to support Solomon or differentiate himself. As dissatisfaction mounts over Solomon’s forceful leadership and unpopular decisions, Waldron struggles to find his place, constantly being watched for signs of falling out, according to Bloomberg.
Bank of America (NYSE:BAC) – The Argentine peso will face further devaluations, according to strategists at Bank of America. It is forecast to weaken to 545/dollar in 2021 and 1,193 in 2024. The recent 18% devaluation has caused increased demand for dollars in the parallel market. The situation intensifies political and economic uncertainty.
HSBC (NYSE:HSBC) – Bangladesh’s equity market, buoyed by rising consumption and foreign investment, could offer big returns, according to analysis by HSBC. Compared to India and Vietnam in past decades, profits are expected to increase by 20% over the next three years.
Boeing (NYSE:BA) – Boeing has appointed Alvin Liu, a former auto industry executive, as head of its China unit, aiming to improve relations amid geopolitical tensions. China is a vital aviation market. Liu replaces Sherry Carbary and has experience with Ford and Chrysler in China.
Southwest Airlines (NYSE:LUV) – Southwest Airlines has reached a tentative agreement with the union of 17,120 transportation workers, setting an hourly wage of $36.72. The contract also provides better retirement medical coverage, 401(k) benefits, and vacations at premium rates.
Fisker (NYSE:FSR) – Startup Fisker has reached an agreement with Tesla (NASDAQ:TSLA) to adopt its charging standard, allowing access to the Supercharger network by 2025. Many automakers are adopting Tesla’s design, predicted to lead the market, replacing the CCS standard.
Tesla (NASDAQ:TSLA) – Tesla has cut prices for its Model S and Model X in China for the second time this week, intensifying concerns about a price war in the auto sector. These cuts put pressure on other automakers, such as BMW and Mercedes-Benz, to adopt similar measures.
Avis Budget Group (NASDAQ:CAR) – Avis Budget was fined $275,000 by New York for failing to rent vehicles to customers without a credit card, in violation of state law.
Lordstown Motors (NASDAQ:RIDE) – Lordstown Motors has agreed to pay $40 million to Karma Automotive after being accused of stealing proprietary technology. The deal includes $5 million in royalties from Karma’s intellectual property. Lordstown faces bankruptcy and the case will go to trial in September.
Apollo Global Management (NYSE:APO), Yellow Corp (NASDAQ:YELL) – Apollo Global Management is selling a $500 million loan to Yellow Corp, waiving the financing extension. The loan was acquired by Citadel. Yellow reviews alternative loan offers and faces debt payments through 2024.
Alibaba (NYSE:BABA) – DingTalk, Alibaba’s platform, will separate from its cloud division, operating as a wholly owned subsidiary. Although rumors suggest a possible IPO, the date has not been confirmed. The separation will not affect DingTalk’s services or its technology collaboration with the cloud division.
Bain Capital (NYSE:BCSF) – Bain Capital has acquired Brazilian steakhouse Fogo de Chão for around $1.1 billion. The sale provided Rhone Capital with a triple return on its $560 million investment in 2018. Fogo, founded in 1979, operates in 76 locations globally.
Ralph Lauren (NYSE:RL) – Canadian regulator CORE is investigating Ralph Lauren’s Canadian unit and GobiMin for possible links to Uyghur forced labor in China, following complaints from 28 organizations. Similar investigations involve Nike Canada and Dynasty Gold.
Roku (NASDAQ:ROKU) – Roku and NBCUniversal have agreed to launch ad-supported channels for reruns of popular shows. This deal expands Roku’s free TV streaming and benefits NBCUniversal. Shares in both companies surged, outperforming the S&P 500. FAST channels, which offer ad-supported content, are a growing trend.
FedEx (NYSE:FDX) – FedEx is pushing its delivery service providers to beef up safety after a surge in accidents nearly tripled insurance costs over the past decade. The company requires the installation of cameras and sensors in vehicles and improvement in training. Providers with low safety scores may face competition on routes. This move aligns with CEO Raj Subramaniam’s plan to integrate company units. But contractors say FedEx doesn’t address high driver turnover, which can lead to more accidents. Safety has become a central issue for the company’s bottom line.
Earnings
Target (NYSE:TGT) – Target lowered its full-year forecast after quarterly sales below expectations. A drop in comparable sales and earnings per share between $7 and $8 are expected. While in-store sales improved in July, concerns about inflation and future trends persist. Second-quarter earnings beat expectations, hitting $1.80 a share.
Tencent Music Entertainment Group (NYSE:TME) – Tencent Music Entertainment, compared to Spotify, saw its quarterly revenue grow by 5.5% due to more subscriptions. However, it projects a drop in future revenue from tighter controls on live streaming, following China’s anti-gambling measures. The company reached 100 million paying users. Shares are up 1.78% in premarket trading on Wednesday.
Coherent (NYSE:COHR) – Coherent was down 21.8% in premarket trading on Wednesday after delivering lower-than-expected first-quarter and full-year forecasts. The company anticipates adjusted earnings of between 5 and 20 cents per share and revenue of between $1 billion and $1.1 billion, contrasting with analysts’ expectations of 47 cents per share and $1.17 billion in revenue. Coherent indicated that his estimate does not consider a significant improvement in the macroeconomic scenario, including in China.
DLocal (NASDAQ:DLO), MercadoLibre (NASDAQ:MELI) – DLocal reported a 24.77% increase in pre-market transactions after delivering better-than-expected quarterly results and confirming forecast annual revenue of between $620 million and $640 million. In addition, Pedro Arnt was appointed co-CEO of the company, having previously served as CFO of MercadoLibre, a major Latin American e-commerce player.
H&R Block (NYSE:HRB) – After reporting quarterly earnings of $2.05 a share, beating Wall Street’s forecast of $1.88 per share according to Refinitiv, tax preparers are holding steady premarket. H&R Block had revenue of $1.03 billion, above analysts’ estimate of $1.01 billion. In addition, the company raised its quarterly dividend by 10.3%, from US$ 0.29 to US$ 0.32, and also revised upward its forecasts for the full year.
Cava (NYSE:CAVA) – After releasing a second-quarter report with earnings that beat forecasts, shares in the Mediterranean restaurant chain rose 11.88% in premarket trading on Wednesday. The fast-casual company reported revenue of $172.9 million, above analysts’ forecast of $163.2 million, as per FactSet data. In relation to earnings per share, US$ 0.21 was recorded, contrary to the expectation of FactSet analysts who predicted a loss of US$ 0.02 per share.
Stride (NYSE:LRN) – Stocks were flat in premarket trading Wednesday after the education technology company reported better-than-expected results for the fiscal fourth quarter. GAAP earnings of $1.01 per share exceeded FactSet analyst expectations by 14 cents. Likewise, revenue of $483.5 million beat the estimate of $460.7 million.
AgEagle Aerial Systems (AMEX:UAVS) – The company reported in the second quarter a loss per share lower than that recorded in the same period of 2022. AgEagle had a loss of 5 cents per share, which is 2 cents lower than the previous year. However, the company’s quarterly revenue of $3.3 million was lower than last year. Stocks are stable in premarket trading.
Nu Holdings (NYSE:NU) – Nubank announced record revenue in the second quarter, adding 4.6 million customers. Revenue grew 60% to $1.9 billion. The CEO, David Vélez, pointed out that half of Brazilian adults are customers. The bank’s shares have rallied, rising 95% this year, and are up 3.92% in premarket trading on Wednesday.
Mercury Systems (NASDAQ:MRCY) – Defense stocks were down 12.83% in premarket trading on Wednesday after fiscal fourth-quarter results missed Wall Street’s forecasts. Mercury reported earnings of 11 cents a share, excluding certain items, and revenue of $263.2 million. By comparison, FactSet had analysts forecast earnings of 52 centsiui per share and revenue of $278.8 million for the quarter. Additionally, Mercury’s full-year estimates were below FactSet consensus expectations.
Palo Alto Networks (NASDAQ:PANW) – Palo Alto Networks surprised Wall Street by announcing quarterly results on a Friday after markets closed. Analysts are divided on what this indicates. The company, recently added to the S&P 500 index, may have a big DoD contract in the pipeline.
Beam Global (NASDAQ:BEEM) – Sales reached $17.8 million, up about 380% year-over-year and above the $13.5 million analysts projected. Beam is still unprofitable, but the company posted a loss per share of 32 cents, slightly better than the 34 cent loss Wall Street expected. Profitability is expected around 2026.
Union Leader: Cleveland-Cliffs Is the Best Strategic Buyer of U.S. Steel
By Reuters
Aug. 14, 2023
FILE PHOTO: Steel workers at U.S. Steel Granite City Works in Granite City, Illinois, U.S., May 24, 2018. REUTERS/Lawrence Bryant/File PhotoREUTERS
By Bianca Flowers
CHICAGO (Reuters) - The United Steelworkers (USW) international president said on Monday that the union supports North American steel producer Cleveland-Cliffs' bid to acquire rival, United States Steel Corp, adding that the company is the best strategic buyer.
Cleveland-Cliffs said on Sunday that it offered to buy U.S. Steel in a cash-and-stock deal valued at $35 per share, which represented a premium of 43% to U.S. Steel's last closing price.
Good point. Also Lourenco Goncalves financing better be careful with rates where they are going. This company already has enough debt.
Cliffs said its offer to U.S. Steel received the support of the United Steelworkers union, the largest steel industry union in North America. Cliffs said it also prepared debt financing for the proposed deal from several banks.
https://www.foxbusiness.com/industrials/us-steel-rejects-7-3-billion-buyout-offer-cleveland-cliffs