ArcelorMittal, the world's second-largest steelmaker, is considering making an offer to buy US Steel, which rejected an offer from rival Cleveland-Cliffs for $35 a share. The company is discussing with investment banks the possibility of acquiring US Steel but it may not yet take place.
US Steel rejected the offer, offering cash of $17.5 and 1.023 shares of its own stock per share. Esmark, a US industrial holding company, announced its desire to purchase all outstanding shares of US Steel at $35 per share.
The United Steel Workers (USW) union, which represents US Steel employees, has come out in favor of the Cleveland-Cliffs deal, as the collective bargaining agreement with US Steel allows the USW to participate in negotiations and make demands. US Steel's stock price rose 0.4% to $30.78 apiece in additional trading, and the company's capitalization rose 38.3% to $6.7 billion over the past three months.