United States Steel (NYSE:X) stock is rising higher on Monday after the company rejected a massive takeover offer.
According to a press release from the company, it is not accepting the $7.3 billion buyout offer from Cleveland-Cliffs (NYSE:CLF). United States Steel says it rejected the offer because Cleveland-Cliffs wouldn’t engage in proper evaluation of the deal unless it agreed to the terms.
Here’s a portion of the response letter that United States Steel President and CEO David Burritt sent to Cleveland-Cliffs.
“As you well know, our Board – or any board – could not, consistent with its fiduciary duties, agree to a proposal of which 50% is represented by your stock without conducting a thorough and completely customary due diligence process, to evaluate the risks and potential upsides and downsides inherent in the transaction, including the stock component.”
United States Steel notes that it will continue to review strategic options present to it. This follows the company acknowledging that it received several unsolicited bids.
