CEO of Cleveland-Cliffs has expressed interest in potentially bidding on US Steel if Nippon's deal falls apart and he can secure union support.
Cleveland-Cliffs is considering making another bid for US Steel
U.S. Steel rejected a previous $7.3 billion offer from Cleveland-Cliffs
Cleveland-Cliffs, a steel producer based in the United States, is considering making another bid for US Steel. The CEO of Cleveland-Cliffs has expressed interest in potentially bidding on US Steel if Nippon's deal falls apart and he can secure union support. However, it's worth noting that U.S. Steel rejected a previous $7.3 billion offer from Cleveland-Cliffs and the Biden administration previously concluded that a sale to Cleveland-Cliffs wasn't viable.
The article is deceptive in several ways. Firstly, the author presents a false dilemma by stating that Cliffs CEO Lourenco Goncalves will only consider another bid if Nippon Steel Corp's takeover of US Steel falls apart. This implies that there are no other options for Cliffs to acquire US Steel and is therefore misleading. Secondly, the author presents a quote from Goncalves stating that he would have union support for any potential bid, which suggests that this is a given fact when in reality it may not be true as unions do not always back every company's decisions. Lastly, the article uses sensationalism by presenting Cliffs CEO Lourenco Goncalves weighing a lowball bid with union backing.
The potential bid is dependent on Nippon Steel Corp.'s takeover falling apart.
Fallacies
(85%)
The article contains an appeal to authority fallacy. The author cites the opinion of a CEO without providing any evidence or reasoning for their claim.
> Cleveland-Cliffs Inc. Chief Executive Officer Lourenco Goncalves said he’d consider another bid with union support albeit at a significantly lower price than the existing offer from Nippon Steel Corp. That potential bid, though, is dependent on the current Nippon-US Steel tie-up falling apart.
If he were to make an offer, the Cliffs CEO said he’d have the backing of the influential steelworkers union that’s also blasted Nippon's takeover approach.
Bias
(75%)
The author is using language that dehumanizes Nippon Steel Corp. by referring to their takeover approach as a 'blast' from the steelworkers union.
> The Cliffs CEO said he’d consider another bid with union support — for United States Steel Corp., albeit at a significantly lower price than the existing offer from Nippon Steel Corp. <br> > If he were to make an offer, the Cliffs CEO said he’d have the backing of the influential steelworkers union that’s also blasted Nippon’s takeover approach.
, according to a JPMorgan analyst, which was later confirmed by the CEO in an interview with Bloomberg. US Steel shares fell 8.9%, while Cliffs declined 4.8%. If given the opportunity, Goncalves would consider a bid “in the $30s,” he said in the interview with Bloomberg on Thursday.
Accuracy
Goncalves said he has union support if he were to make an offer.
Deception
(50%)
The article is deceptive in several ways. Firstly, the author claims that Cleveland-Cliffs CEO Lourenco Goncalves would consider bidding for US Steel in the $30s a share if given the opportunity. However, this statement contradicts previous statements made by Goncalves himself and JPMorgan analyst Bill Peterson who stated that he was not interested in another bid at such a low price. Secondly, the article quotes an anonymous source stating that President Joe Biden had evaluated brokering a sale of US Steel to Cleveland-Cliffs before deciding it wasn't feasible. However, this information is not backed up by any official sources and should be taken with a grain of salt.
The author claims that Lourenco Goncalves would consider bidding for US Steel in the $30s a share if given the opportunity. This statement contradicts previous statements made by Goncalves himself and JPMorgan analyst Bill Peterson who stated that he was not interested in another bid at such a low price.
The article quotes an anonymous source stating that President Joe Biden had evaluated brokering a sale of US Steel to Cleveland-Cliffs before deciding it wasn't feasible. However, this information is not backed up by any official sources and should be taken with a grain of salt.
Cliffs CEO weighs lowball bid for US Steel with union backing
Cleveland-Cliffs Inc. CEO Lourenco Goncalves is considering making another bid for United States Steel Corp.
, according to a JPMorgan analyst, which was later confirmed by the CEO in an interview with Bloomberg.
Accuracy
, according to a JPMorgan analyst, which was later confirmed by the CEO in an interview with Bloomberg. US Steel shares fell 8.9%, while Cliffs declined 4.8%.
Deception
(50%)
The article is deceptive in several ways. Firstly, the title implies that Cliffs CEO has made a lowball bid for US Steel with union backing when no such information is provided in the body of the article. Secondly, there are multiple instances where MarketScreener promotes their own services and products within the article which can be seen as self-promotion and not providing unbiased news. Lastly, there is a lack of sources disclosed or quoted in the article.
The title implies that Cliffs CEO has made a lowball bid for US Steel with union backing when no such information is provided in the body of the article.
Fallacies
(85%)
The article contains an appeal to authority fallacy. The author cites the CEO of Cliffs as a source without providing any evidence or context for their expertise in the matter.
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Bias
(85%)
The author uses language that dehumanizes the union members by referring to them as 'backing' a lowball bid. This is an example of ideological bias.
> Best financial portal <br> More than 20 years at your side <br> Our Experts are here for you
Cleveland-Cliffs Inc is considering making a bid for United States Steel
`Nippon Steel has made a current offer for US Steel of an unspecified amount`
Accuracy
Any potential bid from Cleveland-Cliffs would require union backing
Deception
(50%)
The article is deceptive in several ways. Firstly, the title of the article suggests that Cleveland-Cliffs is considering a bid from US Steel when in fact it only mentions that they would consider another bid if Nippon Steel's offer was withdrawn and there was union backing. Secondly, the sentence 'Cleveland-Cliffs Inc CLF.N would consider significantly lower than Nippon Steel's 5401.T current offer, Bloomberg News reported on Thursday.' is misleading as it implies that Cleveland-Cliffs has already received an offer from US Steel and the bid was rejected due to its low value when in fact no such offer has been mentioned in the article.
The title of the article suggests that Cleveland-Cliffs is considering a bid from US Steel
The sentence 'Cleveland-Cliffs Inc CLF.N would consider significantly lower than Nippon Steel's 5401.T current offer, Bloomberg News reported on Thursday.' is misleading as it implies that Cleveland-Cliffs has already received an offer from US Steel and the bid was rejected due to its low value when in fact no such offer has been mentioned in the article.
Fallacies
(85%)
The article reports that Cleveland-Cliffs Inc. is considering a bid from United States Steel X.N for their assets, but only if it has union backing and the offer is significantly lower than Nippon Steel's current offer.
>Cleveland-Cliffs would consider another bid for United States Steel provided it has union backing, but it would be significantly lower than Nippon Steel's 5401.T current offer.
, the CEO of steelmaker Cleveland-Cliffs (NYSE:CLF), expressed interest in potentially making a bid for U.S. Steel (NYSE:X) in the $30s per share range if the deal with Nippon Steel fails.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(30%)
None Found At Time Of
Publication
Fallacies
(70%)
The article contains an appeal to authority fallacy by citing the opinions of a CEO and analysts without providing any evidence or reasoning for their claims. The author also uses inflammatory rhetoric when describing President Biden's call as casting doubt on Nippon Steel's acquisition attempts, which is not supported by any facts presented in the article.
Lourenco Goncalves expressed interest in potentially making a bid for U.S. Steel if the deal with Nippon Steel fails.
Bias
(75%)
The author has a clear bias towards U.S Steel and against Nippon Steel's acquisition attempts. The author uses language that portrays the deal with Nippon as failing and presents Cleveland-Cliffs as an alternative buyer for U.S steel at a lower price than what was previously offered by Nippon.
Goncalves highlighted a specific interest in preserving blast furnace assets and indicated a willingness to negotiate a deal at a significantly lower rate than Nippon Steel's $55 offer, emphasizing union support for any potential bid.
Lourenco Goncalves, the CEO of steelmaker Cleveland-Cliffs (NYSE:CLF), expressed interest in potentially making a bid for U.S Steel (NYSE:X) in the $30s per share range if the deal with Nippon Steel fails.
