US steel stocks decline. One of the bidders withdrew.

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One of the competitors

United States Steel

He dropped out of the race. Fewer viable bidders means a lower share price

United States Steel
,

for now.

Wed, Esmark Steel Service Center I finish Its all-cash offer of $35 is for the famous steelmaker US Steel (symbol: X). The decision was influenced by United Steel Workers’ support for a tender offer

Cleveland Cliffs

(CLF).

“USW was our partner in the successful acquisition of Wheeling Pittsburgh Steel, and we will remain close to them,” Esmark CEO Jim Bouchard said in a press release. “We wish[US Steel]the very best during this operation, and will evaluate any opportunities in connection with this operation, contingent upon USW support.”

US Steel announced on August 13 that it is seeking strategic alternatives after receiving offers to buy the entire company or its assets. Cleaves was one of the presenters. He. She a statementAlso on Aug. 13, a cash and stock offering, currently valued at about $33 a share. The original value of the offer, based on Cliffs’ stock price on July 28, was $35 a share.

Esmark offered $35 cash August 14th Reuters reported on Aug 16th that

Arcelor Mittal

(MT) is considering submitting a bid. Mittal did not respond to a request for comment. Possibility

Arcelor Mittal

The offer prompted the USW to explicitly support Cliffs’ bid.

Cliffs appears to be in the driver’s seat, but KeyBanc analyst Philip Gibbs recently wrote that the partnership between Cliffs and US Steel will face antitrust scrutiny. Both companies are major players in iron ore and automotive steel in North America.

US Steel closed down 2.2% on Wednesday at $31.21, while US Steel closed down 2.2% on Wednesday at $31.21.

Standard & Poor’s 500
And

Dow Jones Industrial Average
It rose 1.1% and 0.5%, respectively. Cliffs shares rose 0.8%.

At current prices, shares of US Steel are about $1.70 or 5.4% less than Cliffs’ offer. This spread may be tighter if investors expect more bidders or Cliffs to increase their bid. Companies like Cliffs don’t usually start out by revealing their best deals, but investors aren’t sure how the M&A drama at US Steel will play out.

Write to Al Root at allen.root@dowjones.com