United States Steel Board Addresses Misinformation

The board of directors of United States Steel (NYSE: X) has recently published a letter addressing misinformation concerning the pending all-cash transaction with Nippon Steel Corporation (NSC). The letter emphasizes the significant value the transaction delivers for investors and the job security, growth, and opportunity it provides for employees, communities, and other stakeholders.

Following a robust strategic alternatives review process, the all-cash transaction with NSC was approved, delivering significant value for investors as validated by their overwhelming approval on April 12. The board highlights the imperative to "correct the record" and outline the multiple benefits of NSC’s investment in U.S. Steel, which includes job security, growth, and opportunity for employees, communities, and other stakeholders.

The NSC investment has been under attack by Cleveland-Cliffs, a competing bidder, who has been sowing misinformation to stakeholders in an effort to derail the transaction. However, the board affirms the commitment to completing the transaction, emphasizing the superiority of the all-cash offer presented by NSC compared to Cleveland-Cliffs' proposal.

The benefits of the NSC investment in U.S. Steel include its pro-competitive nature, contribution to national security, positive impact on employees, and support for the community. Additionally, NSC has committed to maintaining and expanding the U.S. headquarters in Pennsylvania and contributing new capital and technological advances to U.S. Steel.

The overwhelming support of stockholders and approval by the majority of needed foreign regulators indicate progress. The management team continues to engage with employees and community leaders to ensure stakeholders are informed and can make their own decisions without falling prey to misinformation.

Following the closing of the transaction with NSC, the introduction of NSC’s advanced technologies will enhance the competitiveness of the business and improve blast furnace technology. U.S. Steel's strategic projects continue to progress, including the direct reduced iron-grade pellet line at their Minnesota ore operations and the galvanizing line at Big River Steel in Arkansas.

The board concludes that the pending transaction is not only the best deal for U.S. Steel and its stockholders but also for employees, communities, customers, U.S. national security, and the American economy overall. They look forward to closing in the second half of this year and moving forward together with NSC. Today the company's shares have moved -1.3% to a price of $36.26. For more information, read the company's full 8-K submission here.

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