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Multiple Unsolicited Bids Made United States Steel To Evaluate Strategic Alternatives
Last Updated on: September 21st, 2024
United States Steel, the major steel producer, declared on Sunday that it is about to initiate a formal review for the evaluation of strategic alternatives after it received multiple unsolicited bids for most of its business. The review will start soon.
According to the CEO of United States Steel, David Burritt, the steel producer started its review after receiving
?multiple unsolicited proposals that ranged from the acquisition of certain production assets to consideration for the whole company.?
However, the CEO did not disclose the details of the strategic alternatives that the steel producer is looking for.
In addition to that, United States Steel is also taking financial advice from Barclays Capital and Goldman Sachs. Apart from that, as per its statement, it is also taking legal advice from institutions like Milbank and Wachtell, Lipton, and Rosen & Katz.
According to CNBC.com,
?U.S. Steel, which has been raising prices to offset the impact of higher costs related to raw materials and energy, has seen strong demand for its steel products, helping the company beat profit estimates for the second quarter.?
On the other hand, the rival of US Steel, Cleveland-Cliffs, said in a statement on Sunday that on 28th June, the company proposed to buy United States Steel in a private offer. However, the US Steel board rejected the offer by stating the proposal as being ?unreasonable.?
According to the statement made by Cleveland-Cliffs, they offered to pay a sum of $17.50 in cash, as well as 1.023 shares of Cliffs? stock per share of US Steel.
In addition to that, US Steel authorities are also expecting to make a common stock repurchase of $75 million under its existing stock buyback authorization of $500 million.
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