The Zhitong Finance App learned that after ArcelorMittal (AMSYF.US) was considering making an offer to buy American Steel (X.US), US Steel's stock price soared, marking a further escalation in the bidding war.
The stock price of American Steel once rose 6.3%, and the cumulative increase reached 42% this week. The company announced on Sunday that it has begun a strategic review after rejecting Cleveland Cliff's (CLF.US) offer of $7.25 billion. A day later, Esmark Inc announced an all-cash acquisition of the company.
According to reports, ArcelorMittal, the world's second-largest steel producer, is discussing a takeover offer with its investment bankers, but it's uncertain whether they will move forward. Currently, ArcelorMittal and American Steel representatives have yet to respond to media requests for comment.
This battle will decide the fate of an iconic American industrial enterprise. America Steel was once the first company in the US to reach a market capitalization of 1 billion US dollars. At the same time, it is reshaping the steel landscape dominated by a few major producers.
ArcelorMittal has sold almost all of its assets in the US to Cleveland Cliff over the past three years. The successful acquisition of American Steel this time will mean ArcelorMittal's re-entry into the US market.