NEW YORK (AP) — Wheeling-Pittsburgh Corp. on Tuesday asks shareholders to approve Esmark Inc.'s buyout of the steel manufacturer in a deal worth $300 million.
The proposed deal allows Wheeling-Pitt shareholders to choose between standing pat — keeping their original stake and buying new shares at $19 apiece — or selling to Esmark for $20 in cash.
An analyst with Glass Lewis & Co. recommended that shareholders vote for the proposal.
''Given the value of equity-based incentive programs, we believe such a plan could be beneficial for Wheeling-Pittsburgh and its shareholders,'' Jason McCandless said in a client note.
Proxy Governance Inc. analyst Alesandra Monaco also advised shareholders to approve the deal, saying that it will allow them to see some profit.
''We support the transaction, as it appears to be the only opportunity for shareholders to potentially realize a return on their investment,'' Monaco said in a client note.
Shares of Wheeling-Pittsburgh closed Monday at $19.42.