U.S. Steel (X) shares jumped over 27% in early trading on Monday after rejecting an unsolicited offer from Cleveland-Cliffs (CLF) for about $7.25 billion and said it was considering other "strategic alternatives."

The century-old icon of industry, U.S. Steel, called the offer from Cleveland-Cliffs "unreasonable" and said the strategic alternatives it's considering could range from selling just some of its assets to a buyout of the entire company.

U.S. Steel reported a profit of $477 million in the second quarter of this year, less than half of the $978 million the same period a year ago, as steel prices fell and demand slowed. Net sales dropped to $5.01 billion from $6.29 billion last year.

The offer from Cleveland-Cliffs at a price of $35 per share for U.S. Steel shares represented a 43% premium on their closing price on Friday, and if accepted, would have created one of the world's largest steelmakers with ownership of 100% of the nation's domestic iron ore reserves.

Cleveland-Cliffs has made several acquisitions in the last few years, including AK Steel Holding Corp in 2020, as well as the U.S. business of steelmaker ArcelorMittal.

U.S. Steel shares are up roughly 16% year-to-date while shares of Cleveland-Cliffs ar𝔍e about 4.5% lower over the same period.