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US Steel (NYSE:X) fired back at Cleveland-Cliffs (NYSE:CLF) on Tuesday, claiming that the steel producer has been spewing misinformation in an effort to derail its planned $14 billion sale to Nippon Steel (OTCPK:NPSCY).
“It is not often that the full Board of Directors releases a communication to stakeholders outside of significant breaking news, but unfortunately, we have found ourselves in the midst of a long-running misinformation campaign targeting our company, our investors, our employees and our business partners,” US Steel directors wrote in a letter on Tuesday. “For that reason, we must correct the record.”
The US Steel (X) comments come after Cliffs CEO Lourenco Goncalves has repeatedly said in recent months that he sees very little chance that the transaction goes through due to opposition from the US Steelworkers union, including comments he made last week.
“The investment by NSC has been under attack since day one by one of our competitors and unsuccessful bidder – Cleveland-Cliffs – who have been sowing misinformation to our stakeholders in a relentless and unbridled effort to derail the transaction,” the US Steel directors wrote. “While Cleveland-Cliffs is pushing false rumors to influence the market into believing we are working to unwind the transaction, nothing could be further from the truth.”
US Steel (X) reiterated in the letter that it’s “fully committed” to the deal and expects to close the transaction in the second half of the year.
Cliffs (CLF) didn’t immediately respond to Seeking Alpha email request for comment on the US Steel (X) letter.
Earlier this month, three Republican Senators urged President Joe Biden to formally prohibit or suspend the US Steel (X) sale to Nippon Steel (OTCPK:NISTF).
The plea came after Biden has repeatedly said in recent months that US Steel (X) needs to remain an American steel company, though he has not outright called for the $14 billion transaction to be blocked.
