Speculation surrounding the potential acquisition of BlueScope Steel by Seven Group and US partner Steel Dynamics appears to be losing momentum, following the re-initiation of research coverage by major investment banks.
The move by Goldman Sachs and Barrenjoey to resume coverage after a six-month suspension is being interpreted by market observers as a clear signal that the $14.2 billion bid has likely stalled or been abandoned.
The suspension of research coverage during the height of takeover speculation is standard practice to avoid conflicts of interest.
Its resumption typically indicates that the transaction is no longer imminent or that the banks are no longer acting in an advisory capacity that would restrict their equity research functions.
For investors, this shift removes a significant source of uncertainty that had been weighing on the stock's valuation.
BlueScope Steel, Australia’s largest steelmaker, has been a target of intense M&A interest in recent months.