Monday, July 31, 2006

S&P Equity Research Sees CMC, NX and STLD As Possible Takeover Targets in Steel

S&P Equity Research sees the following companies as potential acquisition candidates, Commercial Metals (NYSE: CMC), Quanex Corp. (NYSE: NX) and Steel Dynamics (Nasdaq: STLD). The firm said, "In our opinion, Commercial Metals has attractive assets in steel manufacturing, steel fabrication and scrap recycling. Quanex appears attractive for its strong market position in engineered steel bar and its ample free cash flow. Steel Dynamics has low-cost steel-making operations and a diversified product mix serving the automotive, distributor and nonresidential construction markets."
According to S&P Equity Research, the most likely acquirers would be Nucor Corp. (NYSE: NUE) and U.S. Steel (NYSE: X).


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