By Colin Kellaher
Shares of U.S. Steel jumped more than 20% in premarket trading Monday after the steelmaker said it was reviewing strategic alternatives amid unsolicited proposals from several bidders, including a cash-and-stock takeover offer from rival Cleveland-Cliffs that it has rejected.
Based on Friday’s closing prices, the Cleveland-Cliff’s bid is worth about $32.53 a share for U.S. Steel, a roughly 43% premium.
U.S. Steel on Sunday said it turned down Cleveland-Cliffs’ proposal because its suitor refused to sign a non-disclosure agreement unless U.S. Steel agreed to the economic terms of the proposal in advance.
The Pittsburgh-based company said it is taking a measured approach to considering multiple proposals ranging from the acquisition of certain production assets to a purchase of the entire company, and that Cleveland-Cliffs is welcome to participate in the review.
U.S. Steel shares, which closed Friday at $22.72, were recently up 22% to $27.76 in premarket trading, while shares of Cleveland-Cliffs, which ended Friday’s session at $14.69, were down 6% to $13.81.
Write to Colin Kellaher at [email protected]
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