NEW YORK - United States Steel has launched a strategic review after receiving several unsolicited offers for a partial or total takeover and has already rebuffed one "unreasonable" offer.
But other potential suitors are pressing ahead.
"The board of directors has decided to initiate a formal review process," in order to "evaluate strategic alternatives for the company," US Steel announced in a recent statement.
The reason? The board had received "multiple unsolicited proposals that ranged from the acquisition of certain production assets to consideration for the whole company," chief executive David Burritt said in the statement.
In a press release, the company said it was seeking a total union to form the only American steelmaker in the world's Top 10 in terms of production volume.
Its offer of $35 per share valued this merger at around $10-billion, with a cash-and-stock-financed transaction granting a 43 percent premium to US Steel shareholders at August 11 prices. Synergies would amount to around $500-million.
US Steel's board agreed to discuss the matter, but eventually turned the company down, Burritt explained to Cliffs' chief executive Lourenco Goncalves in a letter the company later made public.
According to Burritt, Cliffs wanted US Steel to agree to its financial terms as a prerequisite to engaging in the due diligence process.
"Pushing our board to do so is in essence a demand that it breach its fiduciary duties," Burritt said in his letter, adding he was left with no option but to reject the "unreasonable proposal."
U.S. Steel has said it's open to an offer, but stressed it had "no deadline" to finish its strategic review, and that there was "no assurance" it would accept one.