Unlikely Bidder Behind $7.8 Billion US Steel Deal Backs Away
- Esmark owner cites union backing rival offer for his decision
- Analysts had expressed doubts over Esmark-US Steel combination
The US Steel Corp. Clairton Coke Works in Clairton, Pennsylvania.
Photographer: Justin Merriman/BloombergThis article is for subscribers only.
Among US steel executives gathering for a major conference in Atlanta earlier this week, two questions dominated the conversation: Will US Steel Corp. be acquired? And is James Bouchard for real?
The drama transfixing the industry began Sunday, Aug. 13, when US Steel revealed it was reviewing multiple proposals from third parties. Within hours, Cleveland-Cliffs Inc., a domestic rival, disclosed a takeover offer — which US Steel then rejected. One day later, Esmark Inc., a steel distributor controlled by Bouchard, announced it was making a higher, all-cash proposal valuing its target at $7.8 billion.