By U.S. Steel saw its shares surge by over 20% in premarket trading on Monday after the company announced that it is considering strategic alternatives in response to unsolicited proposals from several bidders. One of these proposals, a cash-and-stock takeover offer from rival Cleveland-Cliffs, was rejected by U.S. Steel.
The bid from Cleveland-Cliffs is valued at approximately $32.53 per share, representing a premium of around 43%. However, U.S. Steel declined the proposal because Cleveland-Cliffs insisted on U.S. Steel agreeing to the economic terms of the offer in advance, without signing a non-disclosure agreement.
In response to these developments, U.S. Steel stated that it is taking a cautious approach in evaluating multiple proposals, which range from acquiring specific production assets to purchasing the entire company. Furthermore, U.S. Steel emphasized that Cleveland-Cliffs is still welcome to participate in the review process.
As of the closing prices on Friday, U.S. Steel shares were priced at $22.72. However, in premarket trading, they rose by 22% to $27.76. Conversely, Cleveland-Cliffs’ shares closed at $14.69 on Friday, but saw a decrease of 6% to $13.81 in premarket trading.
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