Cleveland-Cliffs Is Sending United States Steel Stock Higher Monday: What's Going On?

United States Steel Corp X shares are trading higher Monday after Cleveland-Cliffs Inc CLF submitted an offer to acquire the company.

What Happened: Over the weekend, Cleveland-Cliffs publicly announced that on July 28 it presented an offer to U.S. Steel's board to acquire 100% of the company for $17.50 per share in cash and 1.023 shares of Cleveland-Cliffs stock, representing a total consideration value of $35 per share.

U.S. Steel rejected the offer, calling it "unreasonable." As a result, Cleveland-Cliffs made the offer public and noted that it stands ready to engage if something changes. 

"I do look forward to continuing to engage with U.S. Steel on a potential transaction, as I am convinced that the value potential and competitiveness to come out of a combination of our two iconic American companies is exceptional," said Lourenco Goncalves, chairman, president and CEO of U.S. Steel.

In a separate press release, U.S. Steel said it's exploring strategic alternatives after "receiving multiple unsolicited proposals that ranged from the acquisition of certain production assets to consideration for the whole Company."

The company also invited Cleveland-Cliffs to participate in the strategic review process.

See Also: US Steel Brushes Off Cleveland-Cliffs' $35 Per Share Offer: Analyst Says Deal Less Likely To Close Without 'Meaningful Concessions'

X Price Action: U.S. Steel shares were down about 9% year-to-date before popping Monday morning.

The stock was up 27.8% at $29.04 at the time of publication, according to Benzinga Pro.

Photo: Janno Nivergall from Pixabay.