One of the biggest stories of the year has been the stellar performance of the mining and metals companies as global growth and demand continues unrelentingly. For the rally to continue into 2008, the M&A activity in the sector will have to continue. On Friday’s Closing Bell, Guy Adami said he fully expects it will.
Freeport-McMoRan’s buyout of PhelpsDodge earlier this year opened the floodgates, Guy said, and investors should expect consolidation to continue in the new year. U.S. Steel would be a clear takeover target, according to Guy, because it has a relatively small market cap of $14 billion. The stock could be the “jewel in the crown” for larger steel companies looking to expand further, he said.
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