12:33 PM EDT, 09/06/2024 (MT Newswires) -- (Updates with details throughout.)

Esmark and its founder and former Chief Executive James Bouchard agreed to pay $600,000 to settle charges the company launched a bid for US Steel (X) while lacking the financial means to do so, the US Securities and Exchange Commission said Friday.

Esmark and Bouchard will pay civil money penalties of $500,000 and $100,000, respectively, according to an SEC order.

The SEC said Esmark launched its bid to acquire US Steel for $35 per share on Aug. 14, 2023, which would have required $7.8 billion in cash to complete.

The next day Bouchard told a cable news program the company had $10 billion in cash committed to the deal. However, the SEC's investigation found that Esmark did not have the funds necessary to consummate the offer.

"Esmark did not have the $7.8 billion in cash required to complete the purchase of US Steel, and, therefore, Esmark and Bouchard did not have a reasonable belief that they would have the means to purchase the securities needed to complete the announced tender offer," the SEC said in a statement.

Esmark did not immediately respond to a request for comment from MT Newswires.

Shares of US Steel were up 5% in recent trading Friday.

Price: 31.51, Change: +1.54, Percent Change: +5.14