U.S. Steel, Lone Star deal clears waiting period early; merger expected to close in second quarter

By Lisa Kerner

Charlotte, N.C., May 11 - The Federal Trade Commission granted early termination of the Hart-Scott-Rodino waiting period in the proposed merger of U.S. Steel Corp. and Lone Star Technologies, Inc.

Under a definitive agreement announced on March 29, U. S. Steel will acquire Lone Star for $67.50 per share in cash in a deal valued at $2.1 billion. Both companies expect the transaction to close during the second quarter of 2007, according to a company news release.

U.S. Steel plans to fund the transaction with cash on hand, financing under its existing receivables purchase program and three new and fully committed bank credit facilities provided by JPMorgan.

U.S. Steel is an integrated steel producer based in Pittsburgh.

Dallas-based Lone Star manufactures steel tubular products used in oil gas wells.

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