Shares of U.S. Steel surged 29% in premarket trading after the company turned down a $7.3 billion buyout offer from Cleveland-Cliffs. Cleveland-Cliffs, the largest flat-rolled steel producer in North America, made a cash-and-stock offer of $35 per share, representing a 43% premium over U.S. Steel's recent closing price. However, U.S. Steel shares were trading below the offer price at $27.92, suggesting skepticism among some investors about the deal's likelihood. A merger between the two firms would create the largest steel producer in North America and the 10th largest worldwide, focusing on the transportation sector. Despite this potential, analysts remain doubtful about the deal's success without substantial concessions. The steel industry has seen recent price cooling after strong demand, impacting companies grappling with high labor costs.