US Steel to explore strategic options after receiving unsolicited bids

August 14, 2023 (MLN): United States Steel said on Sunday it is initiating a formal review to evaluate strategic alternatives for the steel producer after receiving multiple unsolicited bids for part or all of its business, as Reuters reported.

The review was begun after the steel producer received "multiple unsolicited proposals that ranged from the acquisition of certain production assets to consideration for the whole company," CEO David Burritt said in a statement, without disclosing details about the strategic alternatives.

Barclays Capital and Goldman Sachs are serving as financial advisors to U.S. Steel, while Milbank LLP and Wachtell, Lipton, Rosen & Katz are acting as legal advisors, the steel producer said.

U.S. Steel, which has been raising prices to offset the impact of higher costs related to raw materials and energy, has seen strong demand for its steel products, helping the company beat profit estimates for the second quarter.

U.S. Steel also expects to complete about $75 million of repurchases of common stock in the second quarter under its existing $500m stock buyback authorization.

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