US Steel to explore strategic alternatives after unsolicited bids

Steel workers work at US Steel Granite City in Granite City, Illinois, US, May 24, 2018. REUTERS/Lawrence Bryant/File Photo

Aug 13 (Reuters) – United States Steel ( XN ) said on Sunday it would launch a formal review to assess strategic alternatives for the steelmaker after receiving several unsolicited bids for part or all of its business.

The review was launched after the steelmaker “received a number of unsolicited proposals ranging from the acquisition of certain production assets to consideration for the entire company,” CEO David Burritt said in a statement, without disclosing details of strategic alternatives.

Barclays Capital and Goldman Sachs ( GS.N ) are acting as financial advisers to US Steel, while Milbank LLP and Wachtell, Lipton, Rosen & Katz are acting as legal advisers, the steelmaker said.

Rival Cleveland-Cliffs Inc ( CLF.N ) said on Sunday, June 28, that it had proposed to buy US Steel in a private offer, which was rejected by US Steel’s board as “unfair”.

Cleveland-Cliffs offered to pay $17.50 per American Steel share in cash and 1.023 Cliffs shares, it said in a statement.

US 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.

US Steel expects to complete approximately $75 million of common stock repurchases in the second quarter under its existing $500 million share repurchase authorization.

Akansha Khushi and Jyoti Narayan report in Bangalore; Editing by Lisa Shumaker, Paul Simao and Chris Reese

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