Taitai6769/iStock via Getty Images
U.S. Steel (NYSE:X) said it started a formal review process after receiving multiple unsolicited proposals for the steelmaker.
The offers ranged from the acquisition of certain production assets to proposals for the entire company, according to a statement on Sunday.
“U. S. Steel’s Board and management team are committed to maximizing value for our stockholders, and to that end, we have commenced a comprehensive and thorough review of strategic alternatives,” David B. Burritt, U. S. Steel’s CEO said in the statement. “This decision follows the Company receiving multiple unsolicited proposals that ranged from the acquisition of certain production assets to consideration for the whole Company. The Board is taking a measured approach to considering these proposals, including seeking more information in order to evaluate proposals that are preliminary and subject to ongoing due diligence and review.”
There’s no deadline or definitive timetable set for completion of the strategic alternatives review. U.S. Steel (X) said there can be no assurance that the result will result in the company pursuing a transaction or any other strategic outcome.
U.S. Steel (X) has a market cap of $5.1 billion. Its shares have dropped 9.3% this year vs a 26% gain for larger competitor Nucor (NUE) and a 4.7% increase for Steel Dynamics (STLD).
Barclays Capital Inc. and Goldman bSachs & Co. LLC are serving as financial advisors to U. S. Steel. Milbank LLP and Wachtell, Lipton, Rosen & Katz are acting as legal advisors.
