Why United States Steel Stock Soared 36.7% This Week
Shares of United States Steel (NYSE: X) are up 36.7% this week as of 1:45 p.m. ET Friday, according to data provided by S&P Global Market Intelligence, after the steel producer announced a strategic alternatives process after receiving multiple unsolicited acquisition proposals.
To be sure, on Sunday U.S. Steel announced a strategic alternatives process -- a phrase most often coinciding with a company's decision to explore a sale -- stating it had received "multiple unsolicited proposals that ranged from the acquisition of certain production assets to consideration for the whole company."
A few hours later, fellow steel producer Cleveland-Cliffs (NYSE: CLF) announced publicly that it had made an offer to acquire all outstanding shares of U.S. Steel for $17.50 in cash and 1.023 shares of Cliffs stock. Based on Cliffs' closing price Friday, that would have implied a value for U.S. Steel of $35 per share, or roughly $7.3 billion -- a 42% premium to U.S. Steel's closing price on July 28, 2023. It also noted that U.S. Steel's Board of Directors had already rejected the offer as "unreasonable" via a letter received earlier on Aug. 13.
Source Fool.com
