United States Steel (NYSE:X) stock is rising higher on Monday after the company rejected a massive takeover offer.
According to a press release from the company, it is not accepting the $7.3 billion buyout offer from Cleveland-Cliffs (NYSE:CLF). United States Steel says it rejected the offer because Cleveland-Cliffs wouldn’t engage in proper evaluation of the deal unless it agreed to the terms.
Here’s a portion of the response letter that United States Steel President and CEO David Burritt sent to Cleveland-Cliffs:
“As you well know, our Board – or any board – could not, consistent with its fiduciary duties, agree to a proposal of which 50% is represented by your stock without conducting a thorough and completely customary due diligence process, to evaluate the risks and potential upsides and downsides inherent in the transaction, including the stock component.”
United States Steel notes that it will continue to review strategic options present to it. This follows the company acknowledging that it received several unsolicited bids.
X Stock Movement
Keeping all of this news in mind, shares of X stock are seeing strong trading on Monday morning. As of this writing, more than 3.2 million shares have changed hands. That’s not a bad start to the day, considering its daily average trading volume is about 6.8 million shares.
X stock is up 27.6% as of Monday morning.
Investors looking for even more of the most recent stock market news will want to keep reading!
We have all of the latest stock market news that traders need to know about on Monday morning. Among that is why shares of AGBA Group (NASDAQ:AGBA) stock are up, the biggest pre-market stock movers this morning, and more. All of that news is ready to go at the links below!
More Stock Market News for Monday
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
