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U.S. Steel's statement came after USW said this week it would
only back Cleveland-Cliffs Inc as a suitor for the company. The
union said that "over the years, Cliffs has shown itself to be
an outstanding employer to all of its workers."
U.S. Steel, which rejected Cliffs' $7.8 billion cash-and-stock
offer as inadequate, has said it is exploring "multiple
unsolicited proposals". It has attracted a $7.8 billion all-cash
offer from Esmark Inc and as well as potential acquisition
interest from ArcelorMittal SA.
In a regulatory filing, U.S. Steel said its agreement with the
union gives the latter the right to counter with its own
acquisition offer for assets covered under their bargaining
agreement. If the union does not make an offer its board deems
superior, U.S. Steel can sell itself to the bidder of its
choosing.
USW representatives did not immediately respond to a request for
comment.
The union has transferred its right to counterbid for U.S. Steel
assets to Cliffs, which disclosed the arrangement on Thursday in
a statement. It was not immediately clear whether this would
have any impact on the outcome of the bidding process, given
that Cliffs was already participating in it.
In a presentation on its website, Cliffs had said that the
union's labor agreement with U.S. Steel constituted "a practical
right to veto" a deal. It pointed to a requirement for the
acquirer to reach a labor agreement with the union before a
transaction is completed as a means for the union to stop a
company sale.
Cliffs also said on Thursday it agreed to keep in place all
arrangements between U.S. Steel and union workers, should its
bid prevail.
(Reporting by Ananta Agarwal in Bengaluru; Editing by David
Gregorio and Muralikumar Anantharaman)
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