Sept 6 (Reuters) -

The U.S. Securities and Exchange Commission on Friday said

manufacturing firm Esmark Inc and its founder have agreed to pay

a combined $600,000 in civil penalties in connection with a

false tender offer to buy U.S. Steel Corp.

Esmark in August 2023 announced plans to buy U.S. Steel

for $35 per share, even though the firm did not have the

finances to make good on the offer, the SEC said in a statement.

A lawyer for Esmark and its founder, chairman and former

CEO James Bouchard did not respond immediately to call for

comment. They did not admit or deny the SEC's findings.

At Bouchard's direction, Esmark announced an offer to

buy all issued and outstanding shares of the steelmaker in a

deal that would have required $7.8 billion in cash to complete,

the SEC said. The statements were false, the SEC said, because

Esmark and Bouchard did not have a reasonable belief they would

have the means to make the purchase.

As part of the settlement, Esmark and Bouchard agreed to

pay civil penalties of $500,000 and $100,000, respectively. They

also agreed not to break a U.S. law designed to protect

investors, the SEC said.