Privately Held Company Esmark Makes a $7.8 Billion Offer to Buy U.S. Steel Corp

Esmark Inc. offered to buy United States Steel Corp. for $7.8 billion in cash, trumping an earlier bid from Cleveland-Cliffs Inc. and raising the stakes in a battle for the future of the US industrial icon.

The announcement by privately held Esmark has surprised many market watchers — the industrial company’s steel business is focused on processing and distributing rather than the raw metal that US Steel produces, making it an unlikely buyer. Esmark chief executive officer and owner James Bouchard, a one-time US Steel executive, said in a phone interview that the company has available cash on hand to fund the offer.

US Steel shares spiked further on the new bid to close 37% higher, its biggest one-day increase on record. Still, the closing price of $31.08 a share remains below the $35 a share being offered by Esmark.

Read the source article at Yahoo Finance