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The United Steelworkers union does not have veto power over any transaction that may result from US Steel’s (NYSE:X) strategic review, a new 8-K filing disclosed Thursday.
US Steel’s (X) labor agreement signed with the union last year says any potential buyer of the company or assets must enter into an agreement with the union “recognizing it as the bargaining representative for the employees working at the plant(s) to be sold,” the filing said.
In the event of a “bona fide offer” to sell a controlling interest, US Steel (X) must provide the union “the earliest practicable notification concerning such transactions and grant to the USW the right to organize a transaction to purchase the assets.”
US Steel (X) must provide USW with 45 days to submit an offer for the assets, during which time the company will not enter into any contract regarding the assets with another party, but the company is under no obligation to accept such an offer.
If the union does not make an offer the US Steel (X) board deems superior, the company can sell itself to the bidder of its choosing, according to the filing.
The USW said this week it would endorse only Cleveland-Cliffs (CLF) as a suitor for US Steel (X) and derided ArcelorMittal’s (MT) bid as “foolish.”