US Steel Soars After It Rejects $7.25 Billion Cliffs Bid
- The offer represents a 43% premium to steelmaker’s last close
- US Steel shares surged Monday in New York, rising 29%
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United States Steel Corp. surged after it rejected a takeover offer from rival Cleveland-Cliffs Inc. to create one of the world’s biggest steelmakers, and said it will begin a review of its strategic options instead.
US Steel, an icon of American industry with roots stretching back more than a century, on Sunday announced a formal process to assess its alternatives after receiving approaches for parts or all of the business. About three hours later, Cliffs went public with its cash-and-share bid, which values the company at about $7.25 billion based on closing prices on Friday, a 43% premium. US Steel surged more than 29% Monday in New York. Cliffs jumped as much as 6.7%.