For some firms that lose an auction to acquire a company, plan B is to blow up the auction altogether, wait for chaos to ensue, and then hope that chaos results in the valuation of the company being sold falling far enough that the company can purchase it on the rebound. U.S. steelmaker Cleveland Cliffs appears to be attempting just such a strategy.
In 2023 U.S. Steel’s management effectively put the company up for sale. Numerous entities made bids, including domestic competitor Cleveland Cliffs, among others. Ultimately, the highest bid came from Japanese steel producer Nippon Steel with a bid that was ultimately nearly 60 percent higher than Cleveland Cliffs.
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