Portal of Dallas logo

Portal of Dallas

U.S. Steel to Acquire Lone Star Technologies

Date posted: March 29, 2007

United States Steel Corporation (NYSE:X) and Lone Star Technologies, Inc. (NYSE:LSS) have entered into a definitive agreement under which U. S. Steel will acquire Lone Star, a leading manufacturer of welded oilfield tubular goods, for $67.50 per share in cash. The agreement was unanimously approved by the boards of directors of both U. S. Steel and Lone Star.

U. S. Steel expects that the acquisition of Lone Star will strengthen its position as a premier producer of tubular products for the energy sector and will create North America’s largest tubular producer. The transaction will broaden U. S. Steel’s energy product offerings by joining U. S. Steel’s predominantly seamless tubular business with Lone Star’s complementary welded tubular business, coupling manufacturing and tubular processing services. Following the transaction, U. S. Steel will have annual North American tubular manufacturing capability of approximately 2.8 million tons.

U. S. Steel expects that the transaction will be accretive to its 2007 earnings per share before considering expected synergies and excluding the accounting effects of the sale of acquired inventory and other customary purchase accounting adjustments. U. S. Steel projects that the combination with Lone Star’s operations will generate annual pre-tax operating synergies in excess of $100 million by the end of 2008.

Under the terms of the definitive agreement, U. S. Steel will acquire all of the outstanding shares of Lone Star for $67.50 per share in cash – an aggregate value of approximately $2.1 billion. The price per share represents a premium of approximately 39 percent to Lone Star’s closing share price of $48.45 on March 28, 2007, and a premium of approximately 43 percent to its 90- day average trading price.

U. S. Steel will pay for the acquisition through a combination of cash on hand and financing obtained under its existing receivables purchase program and three new fully committed bank credit facilities provided by JPMorgan.

The transaction is subject to the approval of Lone Star’s shareholders and other customary closing conditions, including regulatory approvals, and is expected to close in the second or third quarter of 2007.

J.P. Morgan Securities Inc. and Morgan, Lewis & Bockius LLP acted as financial and legal advisers, respectively, to U. S. Steel. Goldman, Sachs & Co. and Weil, Gotshal & Manges LLP acted as financial and legal advisers, respectively, to Lone Star.

About United States Steel Corporation
United States Steel Corporation is an integrated steel producer with major production operations in the United States and Central Europe. An integrated steelmaker uses iron ore and coke as primary raw materials for steel production, and U. S. Steel has annual raw steel production capability of 19.4 million tons in the United States and 7.4 million tons in Central Europe. The company manufactures a wide range of value-added steel products for the automotive, appliance, container, industrial machinery, construction and oil and gas industries. U. S. Steel’s integrated steel facilities include Gary Works in Gary, Ind.; Great Lakes Works in Ecorse and River Rouge, Mich.; Mon Valley Works, which includes the Edgar Thomson Plant and the Irvin Plant near Pittsburgh, Pa., and the Fairless Plant near Philadelphia, Pa.; Granite City Works in Granite City, Ill.; Fairfield Works in Fairfield, Ala.; U. S. Steel Kosice in the Slovak Republic; and U. S. Steel Serbia. U. S. Steel also operates finishing facilities at the Midwest Plant in Portage, Ind., East Chicago Tin in Indiana, and Lorain Tubular Operations in Lorain, Ohio, and is involved in several steel finishing joint ventures. U. S. Steel produces coke at Clairton Works near Pittsburgh and at Gary Works and Granite City Works. The company operates two iron ore mines through its Minnesota Ore Operations on the Mesabi Iron Range in northern Minnesota, one in Mt. Iron and one in Keewatin. In addition, U. S. Steel is involved in transportation services (railroad and barge operations) and real estate operations.

About Lone Star Technologies, Inc.
Lone Star Technologies, Inc. is a $1.4 billion holding company whose principal operating subsidiaries manufacture and market oilfield casing, tubing and line pipe, specialty tubing products, including finned tubes used in a variety of heat recovery applications, and flat rolled steel and other tubular products and services.



Subscribe for Updates: Enter your email:
Preview | Powered by FeedBlitz
Columbine Report Transcript
Dallas Signs
Dallas Projector Rentals - Dallas Fort Worth Texas Portal
Dallas swimming pool custom builders - DFW Dallas Fort Worth ...
Dallas/Fort Worth Pets and Animals
Dallas/Fort Worth Arts/Photography Links
National Hockey League NHL- Dallas Stars News
Dallas/Fort Worth - Is My Cat Too Fat?
Submit Your Site to the Portal of Dallas
Dallas/Fort Worth Apparel/Jewelry Links
Portal of Dallas Privacy Statement
Dallas/Fort Worth Massage Services Dallas ...
National Football League NFL - Dallas ...
Major League Baseball- Texas Rangers News
Dallas/Fort Worth Weddings
Portal of Dallas Message Board TOC
Dallas/Fort Worth Activists and Advocacy Links
Dallas/Fort Worth Financial Services
Original page (without frames) "
U.S. District Court for the District of Columbia - U.S. v ...
Dallas/Fort Worth Real Estate Services
Dallas/Fort Worth Automotive Services
Dallas/Fort Worth Job Links
Submit Your Site to the Portal of Dallas
Dallas Food
Dallas Toys
Dallas Arts
Dallas/Fort Worth Education Services
Dallas News
Dallas Pets
Dallas Maps
Dallas/Fort Worth Lawyer Legal
Texas Seven Escapees - Texas Connally Seven
Dallas Film
Dallas/Fort Worth Theater and Stage
Dallas Music
Dallas Trade
Dallas Radio
Dallas gifts
George Bush Campaign Staffer Sends Video Tape to Al Gore Campaign
Dallas Fence and Dallas Fencing Contractors - D/FW Texas Portal
Dallas Bookstores
Dallas Legal
Dallas Games
Dallas Dance - Lessons
Dallas-Area Educational Facilities
Dallas Sports
Dallas/Fort Worth Shopping Malls
Dallas Beauty - Permanent Makeup - Tanning Salons
Dallas Dining
Dallas siding Company Listings
Dallas cinema and Dallas Movie Theaters
Dallas Ethnic
Dallas Health
Dallas Lawyers - Dallas Attorney Listings
Dallas Museums
Dallas/Fort Worth Transportation Services
Dallas Lodging
Dallas Massage - DFW Portal for North Texas
Dallas flowers
Dallas Science
Dallas Weather
Dallas Roof and Dallas Roofing Contractors - D/FW Dallas Fort ...
Dallas Theater
Dallas Hobbies
Dallas Fitness
Dallas history
Dallas Medical
Dallas Jewelry
Dallas Religion
Dallas politics
Dallas Weddings
Dallas Consumer Counseling - Debt Consolidation
Dallas Minority
Dallas Day Spas - DFW Dallas Fort Worth Texas Portal
Dallas Printing
Dallas Cleaning - Dallas Maid Service
Dallas Commerce
Dallas Pictures
Concrete Contractors - Dallas Concrete Company Listings - D ...
Dallas Painting Company Listings - D/FW Dallas Fort Worth ...
Dallas Education - D/FW Forth Worth Portal
Dallas household
Dallas Spiritual
Dallas Cosmetics - Permanent Makeup
Dallas Libraries
Dallas Charities
Dallas Financial
Dallas Novelties
Dallas / Fort Worth Computer Services
Dallas Computers
Dallas nightlife- D/FW Portal
Dallas Activists and Advocacy Links
Dallas Lawn Care - DFW Dallas Fort Worth Texas Portal
Dallas Recreation
Dallas Employment jobs career
Dallas Technology
Dallas Child Care
Dallas Nightclubs
Dallas Automotive Cars Trucks Autos
Dallas Apartments and Listings - DFW Dallas Fort Worth Texas ...
Dallas Industrial
Dallas Government
Dallas City Guide
Dallas Texas Business Listings
Dallas Mortgage Companies and Home Financing
Dallas Merchandise and Gifts
Spa Week is Dallas' Answer to the National Health Crisis
Domain Name Transfer Agreement - Domain Name Transfer Agreement
Dallas / Fort Worth Day Care Services Child ...
Dallas Webcams
Dallas Events and Tickets
Dallas Day Care and Child Care Services
Dallas Photography and Photographers
Dallas Classifieds
Dallas Electronics
Dallas engineering
www.portalofdallas.com/firestonecomplaints.htm
Dallas Construction
Dallas collectibles
Dallas Pest Control - Dallas Fort Worth Texas Portal
Dallas Universities
Dallas/Fort Worth Professional Services
Texas Seven Escapees
Texas Seven Escapees
Dallas/Fort Worth Medical Health Fitness
Texas Seven Escapees
Texas Seven Escapees
Dallas Organizations
Texas Seven Escapees
Dallas Home Builders - DFW Dallas Fort Worth Texas Portal
Texas Seven Escapees
Dallas/Fort Worth Miscellaneous Services
Dallas Regional Guide
Dallas Limousines - Limo Service - Transportation
Dallas Shopping Malls
Dallas Office Products
Dallas Office Services
Dallas Water Treatment
Dallas Office Cleaning
Southwest Texas State Bobcats Basketball News
Dallas Cleaning Services
Dallas Christmas Displays and Christmas Lights
Dallas Tourist Attractions
Dallas Commercial Cleaning
Dallas Janitorial Services
Dallas Building Maintenance
Dallas Miscellaneous Services
Dallas Professional Services
Results of Hillary Clinton Harris Poll March 27, 2007
Texas Southern Tigers Basketball News
Texas Christian Horned Frogs Football News

Syndicate