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On April 25, 2001, in an Effort to Increase Shareholder

question 66

Essay

On April 25, 2001, in an effort to increase shareholder value, USX announced its intention to split U.S. Steel and Marathon Oil into two separately traded companies. The breakup gives holders of Marathon Oil stock an opportunity to participate in the ongoing consolidation within the global oil and gas industry. Holders of USX-U.S. Steel Group common stock (target stock) would become holders of newly formed Pittsburgh-based United States Steel Corporation. What other alternatives could USX have pursued to increase shareholder value? Why do you believe they pursued the breakup strategy rather than some of the alternatives?


Definitions:

Light Signals

Visual indicators used in various contexts (like traffic control, industrial machinery) to convey information or warnings.

Solenoid

An electromagnetic device that converts electrical energy into mechanical action, often used for remotely controlling switches or valves.

Heater

A device used to generate heat for various purposes, such as warming a room or heating water.

Horn

A device that emits a loud sound for signaling or warning purposes.

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