US Steel Rejects $7.25 Billion Cliffs Bid, Initiates Review

United States Steel Corp. has rejected a $7.25 billion takeover offer from rival Cleveland-Cliffs Inc. and will instead conduct a strategic review of its options. Cliffs' bid, which values US Steel at a 43% premium, was rejected as "unreasonable." The potential deal would have created one of the world's largest steelmakers and given Cliffs a dominant position in the US auto industry and ownership of domestic iron ore reserves. US Steel's strategic review is being advised by Barclays Capital and Goldman Sachs, while Cliffs is being advised by Moelis & Company, Wells Fargo, JPMorgan, and UBS.