Cleveland-Cliffs And U.S. Steel Lock Horns Amid Tensions In Sale Proceedings: Report

United States Steel Corporation X is reportedly embroiled in a dispute with Cleveland-Cliffs Inc. CLF concerning a confidentiality agreement after Cliffs took a public stance with a cash-and-stock offer to acquire the entirety of U.S. Steel at $35 per share. 

U.S. Steel has yet to reveal its books to Cliffs since announcing on Aug. 13 that it will explore a sale, even as it takes initial proposals this week from other potential acquirers because Cliffs will not agree to its conditions, Reuters reported, citing people familiar with the matter. 

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

Cliffs, wanting to acquire U.S. Steel in a $7.1 billion cash+stock deal, has declined to sign a six-month standstill deal that would prevent it from contesting U.S. Steel's board of directors (because directors want to keep its options open as it pursues with Cliffs), the report said.

For instance, a report emerged suggesting Arcelor Mittal MT is discussing a possible bid for the company with advisers.

Read More: U.S. Steel's Bid Review Buzz: Evaluates Confidential Buyout Offers

According to the Reuters report, Cliffs does not necessarily require access to U.S. Steel's financial records to progress with its bid; however, it has been attempting to negotiate a confidentiality agreement to participate in the sales process, added the report.

U.S. Steel has told Cliffs that all bidders are being granted access to its sale process on the same terms, the report mentioned.

Price Action: X shares are trading lower by 0.70% in the premarket to $31.20 on the last check Thursday, while CLF is trading lower by 1.66% to $14.19.

Photo Via Company