Ancora Holdings Readies Proxy Fight At US Steel Amid Merger Chaos

United States Steel Corporation X has issued a response to activist investor Ancora Catalyst Institutional, LP, which holds a 0.18% stake in the company.

Ancora has proposed nine candidates for election to the U.S. Steel Board of Directors at the upcoming 2025 annual stockholder meeting.

The company highlighted the independence of its current Board and its strong history of driving shareholder value, particularly through its collaboration with Nippon Steel Corp NISTF.

U.S. Steel emphasized that its Board had put in considerable effort to secure a favorable deal with Nippon Steel, offering shareholders $55 per share.

The company maintained that the merger with Nippon Steel is the optimal route for U.S. Steel, its workforce, and the U.S. steel sector.

It noted that the deal, which has received wide backing from shareholders, labor unions and local communities, would bring substantial investments into American facilities, including $1 billion for the Mon Valley Works plant.

Ancora, the activist investor, is gearing up for a proxy battle, aiming to replace U.S. Steel’s leadership as it advocates for the company’s shift away from its unsuccessful merger with Nippon Steel, according to a report from the Wall Street Journal.

US steel is questioning Ancora’s true intentions, especially in light of its ties with former potential bidders.

Ancora’s involvement follows U.S. Steel’s agreement in late 2023 to sell itself to Nippon Steel for more than $14 billion.

However, the acquisition was blocked earlier this year by President Joe Biden, who cited national security concerns, with other officials also voicing opposition.

Both U.S. Steel and Nippon Steel are contesting Biden’s decision in court.

Additionally, U.S. Steel indicated that Ancora's actions, including its connections to Cleveland-Cliffs Inc CLF, a previous bidder that did not succeed in acquiring U.S. Steel, were potentially motivated by unclear objectives.

With the 2025 annual meeting nearing, U.S. Steel will release its own recommendations for board nominees in its proxy statement, which will be provided to eligible shareholders.

Price Action: X shares are trading lower by 1.34% at $36.91 in premarket at the last check Monday.

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