AK Steel Holding Corp (AKS)

merged with Cleveland cliffs CLF

AKS - Where did this one go?

Things look to be getting worse everywhere due to Corona... AKS could fall below 1.00 in this environment...

They are paying in shares, not cash. As long as the ratio between the two stays at .40 (which it is), the share payout won't change.

A lot can happen in 17 days. And factoring Corona virus now causing everything to crumble, who in their right mind will conclude a transaction, where you were to previously pay shareholders a higher PPS (buy out price) than where it has sank to now, or may continue to do so in such economic/political climate....

That is my concern...

No question, the Chinese economy is taking a massive hit which will take years from which to recover...perhaps, a whole generation. In the meantime, all movement of steel is going to freeze.

Maybe for China. A lot of blatant bull shit being published now that the black swan virus scam fizzled out. The manipulating Central Banks are going to crash hard. That's what is going on here.

https://www.zerohedge.com/economics/china-disintegrating-steel-demand-property-sales-traffic-all-approaching-zero

Noticed. thanks.

10.5 million heavy volume downside nearing 52 week lows. Noticed State Street filed SC 13/GA 5% acquisition too??

Plenty of shareholders have complained.

AKS has come a long ways from its highs in the 70's just a few years back. What the heck happened?

Agree with your post.

AKS is looking good!

I told you to sell at 3.59 level based on this from SEC filings:

The market value of the merger consideration will fluctuate with the market price of Cliffs common shares and will not be known at the time both Cliffs shareholders and AK Steel stockholders vote on the Merger. Based on the closing share price of Cliffs common shares on the New York Stock Exchange, which is referred to as the NYSE, on December 2, 2019, the last full trading day before the public announcement of the Merger Agreement, of $8.41 per share, the implied value of the merger consideration to AK Steel stockholders was approximately $3.36 per share of AK Steel common stock.

On January 31, 2020, the last practicable trading day before the date of the filing of the accompanying joint proxy statement/prospectus, the closing share price of Cliffs common shares on the NYSE was $7.02 per share, resulting in an implied value to AK Steel stockholders of $2.81 per share of AK Steel common stock. We urge you to obtain current market quotations for Cliffs common shares and AK Steel common stock.

CLEVELAND & WEST CHESTER, OH - January 14, 2020 -

Cleveland-Cliffs Inc. (NYSE: CLF) (“Cliffs”) and AK Steel Holding Corporation (NYSE: AKS) (“AK Steel”) today announced that, in connection with the anticipated acquisition of AK Steel by Cliffs, Cliffs has commenced offers to exchange (each an “Exchange Offer” and, collectively, the “Exchange Offers”) any and all outstanding 6.375% Senior Notes due 2025 and 7.00% Senior Notes due 2027 issued by AK Steel Corporation, a wholly owned subsidiary of AK Steel, as set forth in the table below (collectively, the “Existing AK Steel Notes”) for the same aggregate principal amount of new notes to be issued by Cliffs (the “New Cliffs Notes”). In conjunction with the Exchange Offers, AK Steel Corporation is soliciting consents (each, a “Consent Solicitation” and, collectively, the “Consent Solicitations”) to adopt certain proposed amendments to each of the indentures governing the Existing AK Steel Notes to eliminate certain of the covenants, restrictive provisions and events of default from such indentures (the “Proposed Amendments”).

It will NEVER go higher than already announced buyout price by CLF !! And if this gets descimated further as many are with these shortsell groups and tactics, they may well drop deal, renegotiate, and come back with even lower offer saying "AKS is just not worth as much today- take deal or not, we will move on"...

Told you guys sell your shares on that high note a week ago. This will never go above agreed deal, and if PPS goes even lower, deal may well be re-done to revalue at lower cost so you get even lower buyout price...

Told you for months, some very strong powers on Wall Street hate Trump so damn bad, they are doing all they can in this election year to make him look worse than all the MSNBC/CNN narratives have been trying to do for 3 years now...

I think it benefits both but I think you’ll see ak rise faster then clf because their pushing the finished product

CLF can also use AKS as a long tern tax writeoff for future losses, etc so again, AKS price will never be better than right now, sell what you have gained, walk away, then look at CLF after deal is 100% legal and filed in courts...

I would sell all you have in AK Steel right now based on its past history and current news, that no matter what, this stock is NOT going to go any higher than buyout price ! Step back, wait a while, and if you see pullback within reason on CLF, then reinvest your funds into CLF for long haul then, who is one stating they are buying AKS anyway...

All my opinion of course, I have no position, but I also worked a short stint years ago at AKS and know unions well and BS management...

My only concern is that the numbers stay in balance. I have seen buyouts where the values have gone out of alignment, but I don't foresee that happening here. There are 3 ways the balance could go askew;

1) AKS could rise at a higher rate than CLF. If that happens, I have an AKS sell order in at a decent profit level for me.

2) CLF could drop faster than AKS. If this happens, I may pick up some CLF. I still think the surviving company will do better in the long run and I prefer dividend stocks.

3) Of course there is also the possibility that AKS drops faster than CLF, which would change the share ratio. In that case I guess I'll 'drop back 10 and punt'

I have been in the steel distribution business for over 35 years, not the same market that AKS or CLF supply, but the reality is the same. This buyout will benefit both companies in that their distributors will have a broader range of product. It is getting harder to have multiple vendors for similar but different products. Most in the steel industry require minimum purchasing based on tonnage and, at today's price levels, it makes sense to buy from suppliers that let you mix-&-match product lines to meet minimums. I actually expect more consolidation within the industry for this reason.

Thanks for the incite well said

For every 100 shares, based on today's close:

100 shares @ $3.41 = $341.00

Receive 40 shares CLF

40 shares @ $8.55 = $342.00 Plus $9.60 annual dividend.

Comparable share value, stronger joint company, & a dividend.

I have a large position in aks whats everyone doing if I sell I loose if I stay I loose over half of my stake just hope price keeps going up and can bail with minimal damage

I have a large position in aks whats everyone doing if I sell I loose if I stay I loose over half of my stake just hope price keeps going up and can bail with minimal damage

These are not Govt. investigations and without merit. It means nothing and is simply a whining bank who got burnt betting on an AK Steel BK. It's frivolous and weak.

US slaps import duties of more than 400 per cent on Vietnamese steel to prevent companies exploiting loophole
The US is hardening its rhetoric against Vietnam, which has benefited from President Donald Trump’s trade war with China
Trump described Vietnam last week as ‘almost the single-worst abuser of everybody’ when asked if he wanted to impose tariffs

https://amp.scmp.com/news/asia/southeast-asia/article/3017055/us-slaps-import-duties-more-400-cent-vietnamese-steel?fbclid=IwAR3RrApquEmuOf5iJhajeaTkiH7aZbQT3kqJqgbiehhPTupuKkbd_KSU1f4

SHAREHOLDER ALERT: Monteverde & Associates PC Announces an Investigation of AK STEEL HOLDING CORPORATION - AKS
PR Newswire

Cliff CEO Lorenco fooled the shorts and called out the worm, who filed the leading investigation when he got up in California. Cliffs made their press release at 6am Eastern for a reason. AKS's pain in the neck major hedge fund shorting was still sleeping but got up to make a press release before 6am pacific or 9am eastern. Nobody on the planet knew anything yet but this loser without any facts immediately put out a PR to distract onlookers. Why? you might ask is he putting out press releases before having any knowledge of the deal. Because this sore loser didn't cover his activities and was about to pull the stock down in the morning again but instead got burnt and had to chase like there was no tomorrow. This is only the first sting and if he wants to hang around playing games with other peoples money, he's going to get the horns next time. Lorenco is done playing with these losers.

This is the POS from the press release who got burnt shorting who had a release out before the CC was released. A Little cat and mouse tactic. Lorenco is to old of a cat to be screwed by kittens. Last one standing wins even bigger next time and it won't be no punk wannabe from Cali.

Did any shareholders call this pos clown before the conference call? I didn't think so and why this loser? Caught!

This pos just took a multi million dollar slap in the face. The next one will leave a major dent.

Johnson Fistel, LLP
Jim Baker, 619-814-4471
jimb@johnsonfistel.com

These 2 crony law firms represent shorts who got burnt and not actual shareholders.

AKS was near being insolvent and ready to file for BK which shorts were counting on. Cliffs stepped in and is acquiring AKS and will keep the company stable where all AKS shareholders would have lost everything and all assets through a fire sale.

Shorts hired these wall street lawyers and not shareholders. They had better rethink and cease and desist their criminal activity or more pain will be handed to them.

$AKS Alert! Shareholders are investigating Weiss and Rowley Law firms for market manipulation of a security.

Shareholders know their fabrication of an investigation of AKS and it's merger proposal is a dire attempt to scare the public while giving time for it's wall street clients to cover it's short position losses. What they are doing is manipulation and fraud.

The pps has been recorded from the time of their fraudulent announcement that they labeled an "Alert" and circulated as a press release which it is not. Shareholders are now demanding restitution for any fluctuation in share price that may occur from the time when it's bogus announcement was made public.

A Lead plaintiff will be selected for the class action lawsuit pending a loss in share price.

It's all on Cliffs website. Cliffs is exchanging AKS shares at .40 to 1 and absorbing over 2 billion of AKS debt that is maturing for a combined value of over 3 billion. It's a great deal that enhances both companies as an all in one mining and steel firm.

AKS was at the brink of becoming insolvent and the merger prevented them from filing for BK, where everything is lost.

Wall Street was counting on the BK where shorts were driving them into the ground and upon filing for BK they would have finished the job and would have never had to repay their short positions.

Shareholders should seriously consider a class action against the law firms attempting to derail the deal as they are really behind the crooks on wall street and could care less about shareholders at all. I encourage shareholders to call the wall street attorneys and tell them rotten apples in New York to back off before they get sued and AK Steel is not going out of business and will be making high grade steel for many years to come with the Cliffs merger.

What's the wonderful buyout offer? That is where they will keep this and not let anything more happen- just like DRYS did to its shareholders who all got screwed...

Shorts have been covering quickly. This went from 30% shorted to 6% already. The only thing I see falling apart is the frivolous suit proposed to shareholders by the wall street banks one who has been shorting this to death hoping for BK.

Well they guessed wrong and are going to get burnt again if they think they are smarter than the CEO of Cliffs. This acquisition wasn't done in haste and drummed up overnight.

https://www.virginiamn.com/opinion/our-views-where-iron-range-mining-needs-attention-from-the/article_1b8bb904-05c3-11ea-879c-d3700c32356e.htmlbad

I think the entire thing will fall apart sadly.. LOOK how PPS just being held at buyout price- just like what happened to DRYS and all Shareholders got screwed before going private there... Never allowed to appreciate at all...

New 52 week high EOD?

The pps was low because AK was near being insolvent. This merger prevents AKS from filing for BK where shareholders lose everything. The CEO for Cliffs is a White Knight who more or less is bailing them out of which would have been a certain defeat. BK is what shorts were banking on and the only ones upset with the deal are short positions.

Cleveland Cliffs is going to build up this empire together with AK Steel and beyond what ever seemed possible for AK who would have disappeared and sold off assets in a BK fire sale. Cliffs will hold the company together and it's workforce.

Without Cliffs, AK Steel would have had nothing. With Cliffs AKS shareholders have everything, including 40% of a near billion dollar state of the art brand new HBI plant and also a cash dividend.

Exactly, they're asking because no shareholders are complaining.

Only shorts are complaining because they are not shareholders but sold the stock they didn't own anyway and already have nearly covered short positions.

Now they have no choice but to drive the stock up.

Shorts have no case here and the acquisition is fair and legit. AKS will benefit in a big way at 40% with CLF securing it's debt load and increasing profitability 10 fold.

It's funny that the minute shorts get crushed they go crying to an attorney after burning shareholders for years, selling away their stock. With Lorenco now at the helm and calling the shots, he will counter sue the real cronies behind the frivolous suit. It would be smart for the crocked shorts to cover and move on. Real AKS stakeholders are excited about the transaction and welcome Cleveland Cliffs hands down who will build an empire with what was falling apart under poor management.

tedkov, sounds kinda similar to what CEO did couple months ago for DRYS, and screwed all Shareholders there, and had fixed settlement price, and then took company private after, he stole his entire company through another company Entity which he is CEO of. Should NEVER have been allowed bvy SEC in first place...

Now, I know this is a little different, but Shareholders never informed of this deal, all of sudden find they will only get pennies for what otherwise is/was a very lucrative company, yet stock held way down in this level for a couple years- just like DRYS. Nobody wins as far as Shareholder- Only Insiders/CEO...

Buy out, acquisition, merger, takeover, call it what you want. Every Shareholder lost and got screwed who was invested/holding on for years with the PPS so low as it was, hardly ever moving...

I read a major law firm investigating the entire matter now, as a dubious behind-scenes deal... Asking all Shareholders to contact their firm...??

Banks who shorted the hell out of this are upset, not shareholders. It's a simple tactic to slow the transaction as they are the only ones being burned for their crooked manipulation of the stock that is now, coming to an end.

Shares of AKS will be called in and reissued with AKS then becoming a subsidiary of CLF. Shorts are in full panic as they didn't expect this and need to cover quickly or be crushed and burned.

CLF dividend will also have to be paid by short positions.

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 contact@tripplevy.com

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AK Steel being bought out as of today believe it or not... price around $3.17 per share ...

AK Steel Enters Licensing Agreement Involving Its ULTRALUME® PHS High Strength, High Formability Steel Product

"AK Steel expects to significantly expand its sales of this important automotive product..."

http://www.globenewswire.com/news-release/2019/10/28/1936467/0/en/AK-Steel-Enters-Licensing-Agreement-Involving-Its-ULTRALUME-PHS-High-Strength-High-Formability-Steel-Product.html

* * $AKS Video Chart 10-11-2019 * *

Link to Video - click here to watch the technical chart video

News: $AKS Steel Stocks Are Crashing: Buy or Sell?

Almost exactly one year ago, the S&P 500 reached its 2018 high, and then promptly spent the next three months falling by 20%. Steel stocks took an even bigger beating. Betwen Oct. 3 and Dec. 24, 2019, AK Steel (NYSE: AKS) lost 56% of its value, and even a stalwart like Nucor (NYSE: ...

Read the whole news AKS - Steel Stocks Are Crashing: Buy or Sell?

thank you for the info

*Shares of several steel companies are trading lower in sympathy with Schnitzer Steel Industries after the company issued Q4 EPS guidance below analyst estimates. The company warned 'markets for recycled metals weakened in the fourth quarter, including a marked deterioration in August with a continued decline in September'
Benzinga

why would it drop, they seem consistent lately.

Watching this, but based on what I posted in steels elsewhere, I would not be surprised to see this drop to 1.00 or even be battled falling below to possible delisting warning by Exchange before all this "Anti-Trump" madness plays out in the next year or so...