IPSCO (IPS) Jumps 9% Following X/LSS Deal

Shares of IPSCO Inc. (NYSE: IPS) are 9% higher in early action following US Steel's (NYSE: X) buyout of Lone Star Technologies (NYSE: LSS) at a huge premium. IPSCO is a leading low cost producer of energy tubulars and steel plate in North America with an annual liquid steel making capacity of 4.3 million tons.

Soleil Downgrades U.S. Steel (X) After Takeover Rumor Run-Up

Soleil Securities downgrades U.S. Steel (NYSE: X) from Hold to Sell after the stock reached their $75 price target.
Analyst Charles A. Bradford, from Bradford Research, Inc., said, "While a possible breakup value could approach $100 a share, it is our experience that companies do not trade at the breakup value and possible acquirers won't pay full value for a company."

US Steel (X) Option Implied Volatility Elevated on M&A Speculation

US Steel (NYSE: X) : X is recently up .70 to $74.89. SBSH say's "X is up 15% in the past 3 trading days on M&A related speculation. The steel environment is reminiscent of late-05. Acquisitions speculation premature but credible." X December option implied volatility of 48 is above its 6-month average of 42 according to Track Data, suggesting increasing price fluctuations. Paul Foster

Steel Sector Sees Flurry of Activity on M&A

A lot of steel names are higher today following Russian steel maker Evraz Group's deal to buy Oregon Steel Mills (NYSE: OS). The buyout also comes on the heels of reports Friday that Russia's biggest steelmaker OAO Severstal wants to buy U.S. Steel Corp. (NYSE: X). The buyout activity in the sector has been heavy for some time.

Other steel names: Nucor (NYSE: NUE), AK Steel (NYSE: AKS), Allegheny Tech (NYSE: ATI), Carpenter Technology (NYSE: CRS), Steel Dynamics (Nasdaq: STLD), Chaparral Steel (Nasdaq: CHAP), Companhia Siderurgica Nacional (NYSE: SID), IPSCO Inc. (NYSE: IPS), Mittal Steel (NYSE: MT), Reliance Steel & Aluminum (NYSE: RS).

Reports Russian Severstal Looking to Get Bigger to Buy U.S. Steel (X)

According to reports from Bloomberg, citing Russian daily Kommersant, Russia's biggest steelmaker OAO Severstal is in talks to merge with local iron miners to create a $20 billion company that could bid for U.S. Steel Corp. (NYSE: X).

According to the reports, Severstal is considering a merger with ZAO Gazmetall and ZAO Metalloinvest, controlled by Russian billionaire Alisher Usmanov, which would create a company with enough muscle to buy U.S. Steel.