AK Steel (AKS)

[tedkov]

AK Steel Shareholders Upset Over Merger Bid (Seek to file Lawsuit)- (via Business Journal)
December 3, 2019
Tags: United States Cleveland-Cliffs AK Steel Corporate Affairs Mergers & Acquisitions

A group of AK Steel Holding Corp. shareholders are attempting to block the $1.1 billion purchase of the company by Cleveland-Cliffs Inc.. Under terms of the definitive merger agreement, AK Steel shareholders will receive 0.40 shares of Cliffs common stock for each outstanding share of AK Steel common stock they own. The fixed exchange ratio implies a consideration of $3.36 per share of AK Steel common stock.

The deal would represent a premium of approximately 16% based on the closing share prices of Cliffs and AK Steel common shares, respectively, as of December 2, 2019. The deal is slated to close in the first half of 2020, pending approval by regulators and shareholders of both companies.

The shareholders allege that the purchase price of $3.36 per share is insufficient in light of the company's growth prospects and that deal-protection clauses in the merger agreement preclude other companies from submitting successful competing offers. In addition, shareholders allege that senior management of AK Steel obtained personal benefits for their own self interests in agreeing to sell the company at that price that are not being shared with common stockholders.

AK Steel investor relations did not immediately respond to requests for a comment.

To contact the law firm on behalf of shareholders of AK Steel for more information as to how you can participate with other shareholders in seeking a higher price at no cost or expense can call toll free 800.511.7037 or email at [e-mail]

All rights reserved