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AK Steel -8% as Mitsui refutes takeover speculation

Published 04/10/2017, 05:06 PM
© Reuters.  AK Steel -8% as Mitsui refutes takeover speculation
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  • AK Steel (NYSE:AKS) plunged 8% in today's trade, erasing gains from last week's spike on rumored takeover talk, as Mitsui said this morning that it had no interest in pursuing the company.
  • The steel sector is particularly in focus given Chinese dumping and Pres. Trump's "America First" policy, but KeyBanc analyst Philip Gibbs says he does not expect significant benefits for AKS from any changes.
  • "Anything incremental from a trade policy perspective could be perhaps helpful, but [AKS] has been a strong beneficiary of tariffs that have been enacted for the last 12-18 months," Gibbs tells CNBC.
  • Also, a WSJ weekend report suggested that AKS and U.S. steelmaker peers may have pressed their luck in their strategy of raising prices after international rivals had to pay new import tariffs to get into the U.S. market.


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