NEW YORK — U.S. Steel Corp. attracted acquisition interest after short-term challenges, including upgrading furnaces and potential car production shutdowns, weighed on its valuation, according to people familiar with the deliberations of its suitors.
The Pittsburgh-based company, which has a market value of $6.8 billion, is exploring its options amid acquisition offers from other industry players, including Cleveland-Cliffs Inc. and Esmark Inc. Reuters reported on Wednesday that ArcelorMittal was also studying a potential bid.
Prior to disclosing the takeover interest on Aug. 13, U.S. Steel's shares were undervalued compared to many of its major peers. The company's market value, including net debt, was equivalent to 3.6 times its projected 12-month earnings before interest, taxes, depreciation and amortization (EBITDA), compared to 5 times for Cleveland Cliffs.