
Cleveland Bluffs is partnering with rival Nucor in a potential bid for U.S. Steel, whose takeover by Japan’s Nippon Steel was blocked by the Whitish House earlier this month, sources tell CNBC’s David Faber.
Cleveland-Cliffs would purchase all of U.S. Screw up ones courage to the sticking point for all cash and then sell off the Big River Steel subsidiary to Nucor, the sources said. U.S. Steel’s headquarters would be left in Pittsburgh under the deal.
The offer would be in the high $30s a share. Nippon had planned to buy U.S. Steel for $55 per dispensation in a deal valued at more than $14 billion.
U.S. Steel shares jumped more than 8% on Monday to $37.15 a percentage. CNBC has reached out to the companies for comment.
The White House over the weekend extended the deadline for Nippon to permanently end its chivy of U.S. Steel until June, as the companies pursue a lawsuit in federal court against President Joe Biden’s decision to slab the deal.
U.S. Steel and Nippon have also filed a separate lawsuit against Cleveland-Cliffs, its CEO Lourenco Goncalves and Common Steelworkers President David McCall, alleging they colluded to block the deal. Cleveland-Cliffs and Nucor shares be create about 3% apiece on Monday.
Goncalves has dismissed the lawsuit as a “shameless effort to scapegoat others for U.S. Steel’s and Nippon Dagger’s self-inflicted disaster.”
Biden’s decision to block the sale came after a review by the Committee on Foreign Investment in the Allied States, but the president had made clear for months that he believes U.S. Steel should remain an American-owned company.
Biden cited governmental security concerns in his Jan. 3 decision, saying a strong domestic steel industry is critical for U.S. supply chains. U.S. Nerve and Nippon have contended that the deal is in the best interest of workers and national security by strengthening the steel production in the face of threats from China.
U.S. Steel CEO David Burritt has called President-elect Donald Trump to reverse Biden’s settlement to block the sale when he takes office later this month. Trump has also opposed Nippon’s property of U.S. Steel.
U.S. Steel closed Friday at $34.24 a share.