It would have been safe to say, not so long ago, that no one would want to buy U.S. Steel (NYSE:X). But times have changed since then, and now, the steelmaker is drawing plenty of interest. In fact, U.S. Steel now has as many as four interested buyers, and shares are up over 3% as investors buy in ahead of a potential acquisition.
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Two of the potential buyers are familiar names and names we already know. Both Cleveland-Cliffs (NYSE:CLF) and ArcelorMittal (NYSE:MT) are still in the running to buy U.S. Steel. But new reports suggest that a third and a fourth buyer have entered the fray. Sadly, at this point, little is known about them.
We’ll likely learn more about this later this week, as the first-round bids for U.S. Steel are due by Friday. We also know that U.S. Steel has already rejected several bids, including the $7.3 billion offer originally posed by Cleveland-Cliffs. However, it’s also a safe bet that U.S. Steel would like to move rapidly, as reports note it’s been required to shut down its furnace at Granite City. The furnace in question was idled thanks to the UAW strike, now in its fifth day at a range of locations. Meanwhile, United Steelworkers Local 1899 is currently working to understand what the UAW’s strike means for steelworkers.
What is the Outlook for U.S. Steel Stock?
Turning to Wall Street, with six Hold ratings and three Sell, analyst consensus calls U.S. Steel stock a Moderate Sell. Further, with an average price target of $23.92, U.S. Steel stock comes with a bruising 24.11% downside risk should an acquisition not go through.
