Lone Star shareholders to vote June 14 on U.S. Steel merger

By Lisa Kerner

Charlotte, N.C., May 7 - Lone Star Technologies, Inc.'s special meeting of shareholders will be held on June 14.

Shareholders of record as of May 15 will be asked to vote on the proposed acquisition of Lone Star by U.S. Steel Corp. for $67.50 per share, or about $2.1 billion.

The companies entered into a definitive agreement on March 29, and the transaction is expected to close in the second or third quarter of 2007, according to a company news release.

Both companies' boards of directors have unanimously approved the agreement, which includes a $59 million termination fee.

U.S. Steel, a Pittsburg-based steel producer, is funding 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.

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

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