The sources requested anonymity because the deliberations are confidential. Representatives for ArcelorMittal and U.S. Steel did not immediately respond to requests for comment.
U.S. Steel shares rose 5.2 percent to $31.81 in New York on Wednesday afternoon. That compares to bids from Cleveland-Cliffs and Esmark that were both worth $35 per share when submitted. Esmark’s offer is all cash, while Cleveland-Cliffs would pay for the deal half with cash and half with its own stock.
ArcelorMittal’s deliberations come after U.S. Steel said on Sunday it had launched a process to explore interest from potential acquirers. The United Steelworkers union supports Cleveland-Cliffs’ bid, however U.S. Steel has rebuffed it as “unreasonable.”
U.S. Steel became an acquisition target following several quarters of falling revenue and declining profits, as it struggled with high raw material and energy costs.
ArcelorMittal, like its peers, has also been grappling with a slowdown in demand, as global economic growth slows. Last month it reported a second-quarter profit of $2.6 billion, half that of a year ago.
ArcelorMittal has said that global steel demand excluding China is expected to grow 1-2 percent this year, down from a previously forecast range of 2-3 percent, due to higher U.S. interest rates and weak construction activity in Europe.
