One of the biggest merger and acquisition news items of the week has been the proposed buyout of United States Steel Corporation (NYSE:X) by Japanese company Nippon Steel.
One member of Congress has been actively trading U.S. Steel shares and options in 2023.
What Happened: Nippon Steel is offering $14.9 billion including debt to purchase U.S. Steel, with current shareholders getting a proposed $55 per share. The deal comes months after Cleveland-Cliffs Inc (NYSE:CLF) offered to buy the company for around $35 per share and was turned down.
The buyout could see many voice opposition against it with the United Steelworkers Union coming out and saying they do not support the deal.
Sen. John Fetterman (D-Penn.) said he would do everything he can to block the deal.
“The acquisition of U.S. Steel by a foreign company is wrong for workers and wrong for Pennsylvania. I’m gonna do everything I can to block it,” Fetterman said Monday. The company headquarters is in Pittsburgh.
One member of Congress may be hoping the deal gets approved, which could make any involvement of the Senate a conflict of interest.
Sen. Tommy Tuberville (R-Ala.) has traded shares and options of U.S. Steel several times in 2023, including several recent transactions.
Data from Quiver Quant shows Tuberville made the following recent trades of U.S. Steel shares.
Nov. 7 (reported Dec. 15): bought $1,001 to $15,000 in U.S. Steel $20 puts, expiration June 21, 2024
Oct. 11 (reported Nov. 16): bought $1,001 to $15,000 in U.S. Steel $25 calls, expiration June 21, 2024
Oct. 11 (reported Nov. 16): sold $1,001 to $15,000 in U.S. Steel shares
Oct. 11 (reported Nov. 16): sold $15,001 to $50,000 in U.S. Steel shares
The recent sales of U.S. Steel shares and the put options could turn into bad trades from Tuberville with U.S. Steel shares hitting 52-week highs of $50.20 on Monday and worth a potential $55 if the acquisition is approved.
Tuberville’s purchase of calls with a $25 exercise price are now worth significantly more than they were bought for, netting a nice potential profit for the Senator.
One X user was quick to point out the potential conflict of interest for Tuberville given his committee appointments in Congress.
“Not only did Sen. Tommy Tuberville buy puts on US Steel, he also sits on the Senate Commodity Subcommittee which…
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