Cleveland-Cliffs Gets Exclusive Assignment Of Right To Bid From United Steelworkers

(RTTNews) - Cleveland-Cliffs Inc. (CLF) said Thursday that it received the assignment of the United Steelworkers' (USW) right to bid under their Basic Labor Agreement with United States Steel Corp. (X).

Cliffs said that, with the exclusive assignment, it is the only realistic buyer able to acquire the totality of U.S. Steel. Furthermore, Cliffs has agreed to assume, upon closing of a transaction, all of the agreements between U.S. Steel and the USW that are applicable to the U.S. Steel employees.

As per the terms of the USW's collective bargaining agreement with U.S. Steel, a potential sale of the whole company or USW-represented assets could not be consummated without the support of the USW. The assignment transfers to Cliffs the USW's right to bid on such potential transactions. The USW's transfer and assignment only applies to Cliffs.

On Sunday, United States Steel rejected a $7.3 billion takeover offer from Cleveland-Cliffs Inc. (CLF). U.S.Steel said it was unable to properly evaluate the proposal because Cleveland-Cliffs refused to engage in the necessary and customary process to assess valuation and certainty unless U.S. Steel agreed to the economic terms of the proposal in advance.

U.S. Steel then said it cannot determine whether Cleveland-Cliffs' unsolicited proposal properly reflects the full and fair value of the company. It has no choice but to reject the unreasonable proposal.