UBS thinks U.S. Steel takeover unlikely
US Steel Corp.'s status has been downgraded from neutral to reduce by the United Bank of
Switzerland, as the bank's equity analysts think a takeover of the company is highly unlikely.
Despite speculation about a takeover of the $8.3 billion steel giant, analyst Timna Tanners does not believe these rumors hold weight.
"
US Steel is the world's seventh largest producer for 2004. We do not envision the larger companies are interested or financially comfortable with making this size acquisition currently," Tanners wrote in in her research.
Ms. Tanners predicts that fourth quarter earnings will be weak due to natural gas prices and imports. She has also raised the price target to $45 from $41.
US Steel stock closed Thursday up 2.8 percent at $48.91 and has gained 20 percent since last week and 34 percent since the end of October.