After Cleveland-Cliffs and the Esmark Group, Reuters now says, it is giant Arcelor-Mittal that intends to buy US Steel, a historic US steel producer.
The centenary of steel in the United States, which was founded in 1901, is the target of powerful greed on the part of many companies. Currently, the company headed by David B. Burritt “with nerves of steel” and rejected the proposals. And yesterday, according to Reuters, a strong candidate entered the fray: Arcelor-Mittal, the world’s second largest steel producer.
US Steel, the world’s first billion-dollar company, revealed last Sunday that it had rejected an offer from Cleveland-Cliffs of $7.25 billion in cash and stock.
US Steel indicated that it had received “multiple offers” to buy part of its assets or the entire company. As for negotiations with the Cleveland Cliffs, the company said it ended last Friday because the candidate refused to sign a confidentiality agreement so that financial information could be exchanged without pre-approving the value proposition.
A day later, it was the turn of industrial group Esmark to reveal that it had approached US Steel with a cash offer of $35 per share, which would be the equivalent of a worldwide sum of $7.8 billion. Esmark, led by former US Steel CEO James Bouchard, indicated that the offer is valid through November 30, though it admits to extending that deadline.
For now, US Steel is benefiting from the “courtship” and its shares are up about 40% since the start of the week, rising from $22.72 at the end of Friday to $31.47 on Wednesday.
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