United States Steel Attracts Bullish Bets From Options Traders Following Takeover Offer
Portfolio Pulse from Lisa Levin
United States Steel Corporation (NYSE:X) shares rose sharply after rejecting a $35 per share acquisition offer from Cleveland-Cliffs Inc. (NYSE:CLF). The company was one of the top 10 most active single stock options and traded more than 15x its average daily options volume. Cleveland-Cliffs publicly announced the offer to acquire 100% of U.S. Steel for $17.50 per share in cash and 1.023 shares of Cleveland-Cliffs stock, a total consideration value of $35 per share. U.S. Steel rejected the offer, calling it 'unreasonable'.
August 15, 2023 | 12:05 pm
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POSITIVE IMPACT
Cleveland-Cliffs' shares gained after its public announcement of the acquisition offer to U.S. Steel, despite the offer being rejected.
Despite the rejection of its acquisition offer, Cleveland-Cliffs' shares gained after the public announcement. This suggests that investors may see potential value in the proposed deal, which could impact the company's share price in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 100
POSITIVE IMPACT
U.S. Steel's rejection of Cleveland-Cliffs' acquisition offer has led to a surge in its share price and options trading volume.
The news of the rejected acquisition offer has led to increased interest in U.S. Steel, causing a surge in its share price and options trading volume. This could potentially lead to further price volatility in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100