Benzinga - by Michael Cohen, Benzinga Editor.
In a series of major industry moves, legal scrutiny surrounds the sale of a leading steel corporation, while another key player in the sector finalizes a significant business divestiture.
The former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., and his law firm, Kahn Swick & Foti, LLC, are looking into the planned sale of United States Steel Corporation (NYSE: X) to Nippon Steel Corporation (OTC: NPSCY).
According to the proposed deal, U.S. Steel's shareholders will get $55.00 in cash for every share they own. The law firm wants to determine if this consideration and process were done properly and whether or not the $55 per share ($14.1 billion in total) deal undervalues U.S. Steel.
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Meanwhile, Ascent Industries Company (NASDAQ: ACNT), which focuses on the production and distribution of specialty chemicals and industrial tubular products, including welded pipes and tubes, announced the sale of its Specialty Pipe & Tube business for approximately $55 million in an all-cash transaction that closed on December 22, 2023.
"While SPT is a unique and profitable business, the inherent cyclicality in its end-markets makes it a much better fit for the private markets," said CEO Chris Hutter. "This transaction provides Ascent with the ability to dramatically reduce our debt, while providing additional available capital to pursue growth opportunities within our focused businesses under new segment leaders."
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