SEC fines Esmark Inc. and James Bouchard for announcing a $7.8 billion tender offer for U.S. Steel without having the financial means to complete the deal.
The Securities and Exchange Commission (SEC) has settled charges against Esmark Inc. and its founder, James Bouchard, for falsely announcing a $35-per-share tender offer to purchase U.S. Steel Corporation, despite lacking the financial means to complete the deal. In August of 2023, Esmark claimed it could acquire all U.S. Steel shares for $7.8 billion in cash. The following day, Bouchard stated on television that Esmark had $10 billion available. However, the SEC found these claims to be untrue, as Esmark did not have the necessary funds to fulfill the offer.
“Bouchard and Esmark could not have completed the tender offer for U.S. Steel that they announced,” said Director Antonia Apps of the New York Regional Office. “Investors should be able to trust companies’ and executives’ public statements.”
The SEC determined that Esmark and Bouchard violated Section 14(e) of the Securities Exchange Act of 1934, which governs tender offer fraud.
As the Lord Leads, Pray with Us…
- For SEC officials as they hold businesses and executives accountable for fraudulent practices and investment offers.
- For Chair Gensler and members of the SEC to seek God’s direction as they seek to ensure compliance with investment laws.
Sources: Securities and Exchange Commission