US STEEL REAFFIRMS INVITATION FOR CLEVELAND-CLIFFS TO JOIN STRATEGIC REVIEW

KUALA LUMPUR, Aug 14 (Bernama) -- United States Steel Corporation (US Steel) confirmed that it has invited Cleveland-Cliffs Inc (Cleveland-Cliffs) to participate in its previously announced strategic review process.

Previously, US Steel disclosed it has commenced a formal review process, with the assistance of outside financial and legal advisors.

This is to evaluate strategic alternatives for the company after receiving multiple unsolicited proposals that ranged from the acquisition of certain production assets to consideration for the whole company.

According to a statement, US Steel had received an unsolicited cash and stock proposal from Cleveland-Cliffs to acquire all of its outstanding shares.

In a letter to Cleveland-Cliffs dated on Aug 13, US Steel said it was unable to properly evaluate the proposal because Cleveland-Cliffs refused to engage in the necessary and customary process to assess valuation and certainty unless US Steel agreed to the economic terms of the proposal in advance.

US Steel President & Chief Executive Officer, David Burritt said the company’s Board cannot determine whether Cleveland-Cliffs' unsolicited proposal properly reflected the full and fair value of the company, but has no choice to reject the unreasonable proposal.

“The Board remains committed to maximising value for stockholders, and to that end has decided to initiate a formal review process to evaluate strategic alternatives,” he added.

US Steel has hired Barclays Capital Inc and Goldman Sachs & Co LLC as its financial advisors, with Milbank LLP and Wachtell, Lipton, Rosen & Katz acting as its legal advisors.

-- BERNAMA