Steel workers at U.S. Steel Granite City Works in Granite City, Illinois, U.S., May 24, 2018. REUTERS/Lawrence Bryant/File Photojumped 29% in premarket trading on Monday, after the more-than-a-century old steelmaker rejected a $7.3 bln buyout offer from Cleveland-Cliffs and said it would review its options following "multiple unsolicited proposals".offered
Despite the surge, shares of U.S. Steel were trading well below the offer price at $27.92, indicating some investors believe a deal may not happen at that price. Cleveland-Cliffs shares were down 6.1%. "We view the probability of this deal getting done without meaningful concessions as low," Gibbs added.
NYMEX U.S. Midwest Hot-rolled steel futures have fallen about 9% so far this year, but remain above pre-pandemic levels.