News leaked on a recent weekend that Cleveland-Cliffs (NYSE: CLF) was looking to buy United States Steel (NYSE: X). When the trading week got underway, some broad details of the deal came out, including a $35-per-share price tag made up of a mixture of cash and stock. U.S. Steel rejected the offer and announced that it was considering other offers.

Although specific to the steel industry, U.S. Steel being "in play," as they say on Wall Street, highlights how unpredictable and shocking acquisition activity can be. Using this situation, let's look at what investors can do when a stock they own is fielding takeover interest.

It is important to understand that Cleveland-Cliffs' offer to buy U.S. Steel is a major event in the domestic steel market. There are really only four big public players in the space: U.S. Steel, Cleveland-Cliffs, , and Steel Dynamics. When the market opened for trading on the Monday after the news of the acquisition offer broke, every steel company rose, even Cleveland-Cliffs.

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Source Fool.com