“Misinformation” might be the latest cultural bugaboo to take hold of the collective unconscious and attempt to throttle it into submission. It seems like “misinformation” these days means “anything I don’t agree with,” and people are pursuing that angle accordingly. In fact, U.S. Steel (NYSE:X), whose acquisition has been a hot-button issue for months now, is accusing rival and former suitor Cleveland-Cliffs (NYSE:CLF) of engaging in just that. The news wasn’t welcome to investors, though, and shares are down almost 1.5% in Tuesday afternoon’s trading.
U.S. Steel brought out its entire Board of Directors to pen a letter addressing what it called “…a long-running misinformation campaign targeting our company, our investors, our employees and our business partners.” This letter followed word from Cleveland-Cliffs CEO Lourenco Goncalves’ repeatedly expressed opinion that the sale of U.S. Steel to Nippon Steel (NISTF) will not go through.
While certainly, that’s one possible outcome—especially in an election year where the incumbent is eager for Rust Belt votes—it’s the frequency and the fervor of the expression that seems to be rubbing U.S. Steel the wrong way. U.S. Steel, for its part, still looks to close the deal in the second half of 2024. Goncalves, meanwhile, responded to the response, calling U.S. Steel’s deal “un-closeable” and saying they were trying to blame Cleveland-Cliffs for it.
Meanwhile, Beyond the Scuffle
The timing on this is particularly interesting, as reports note that Nippon Steel is once again planning to send envoys to the U.S. starting next week. Nippon Steel is sending vice chairman and major negotiator Takahiro Mori to gather some more information and keep up previously-established discussions. But with a major election now closer than ever, and good signs that an even more protectionist candidate awaits in the wings in the form of former President Trump, Mori will have to move quickly and strategically to prevent the deal from fading away altogether.
Is U.S. Steel a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on U.S. Steel stock based on three Buys and three Holds assigned in the past three months, as indicated by the graphic below. After a 68.01% rally in its share price over the past year, the average U.S. Steel price target of $45.25 per share implies 24.79% upside potential.
Is It Wise to Allocate $1,000 Toward X Stock Right Now?
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