US Steel has rejected a $7.3bn acquisition bid from rival Cleveland-Cliffs, the largest North American producer of flat-rolled steel, shortly after the company said it had hired financial advisers to evaluate offers for the company.

According to a report by the Financial Times, Cleveland-Cliffs said it proposed a shares-and-cash acquisition for a total of $35 per share of US Steel stock, representing a 43% premium on US Steel’s closing price of $22.72 on Friday, but that the offer was turned down.

US Steel said it is considering ‘strategic options’ and has already received multiple unsolicited bids that ranged from the possible acquisition of the whole company to specific assets. Cleveland-Cliffs chief executive Lourenco Goncalves said in a statement he hoped to continue to engage with US Steel on a possible deal.

In US Steel’s quarterly financial report published on 28 July, it was stated that chief executive David Burritt adopted a stock sale plan on 6 June that will sell only if shares trade at a minimum of $49.87, according to VerityData.

Source: The Financial Times