Aug 17 Reuters U.S. Steel said on Thursday that its labor agreement with United Steel Workers USW does not afford the union the right to veto a sale of the company that may arise from its recently announced strategic review.

U.S. Steel39;s statement came after USW said this week it would only back ClevelandCliffs Inc as a suitor for the company. The union said that over the years, Cliffs has shown itself to be an outstanding employer to all of its workers.

U.S. Steel, which rejected Cliffs39; 7.8 billion cashandstock offer as inadequate, has said it is exploring multiple unsolicited proposals. It has attracted a 7.8 billion allcash offer from Esmark Inc and as well as potential acquisition interest from ArcelorMittal SA.

In a regulatory filing, U.S. Steel said its agreement with the union gives the latter the right to counter with its own acquisition offer for assets covered under their bargaining agreement. If the union does not make an offer its board deems superior, U.S. Steel can sell itself to the bidder of its choosing.

USW representatives did not immediately respond to a request for comment.

The union has transferred its right to counterbid for U.S. Steel assets to Cliffs, which disclosed the arrangement on Thursday in a statement. It was not immediately clear whether this would have any impact on the outcome of the bidding process, given that Cliffs was already participating in it.

In a presentation on its website, Cliffs had said that the union39;s labor…