In a letter dated Jan. 27, Ancora Holdings Group nominated nine candidates for U.S. Steel's board. The investor also said its plan includes installing Alan Kestenbaum as CEO, replacing David Burritt.
President Joe Biden in early January blocked the $14 billion sale of U.S. Steel to the Japanese company Nippon Steel, in one of the last acts of his presidency, according to a story published by the Indiana Capital Chronicle.
U.S. Steel and Nippon filed several lawsuits over Biden’s order to block the acquisition and seek a new review of the deal.
“We remain confident that our partnership with Nippon Steel is the best deal for American steel, American jobs, American communities and American supply chains,” the statement said. “With Nippon Steel, U. S. Steel remains an American company and its headquarters will stay in Pittsburgh, its iconic name will not change, and its products will remain mined, melted and made in America.”
Ancora believes President Donald Trump will also reject the deal.
“Although U.S. Steel seems to be holding out hope that it can convince President Trump to approve the deal, the facts indicate that this is a pipe dream,” according to the letter to the board. “President Trump has repeatedly voiced opposition to the transaction and has long been skeptical of deals with Japanese businesses.”
The nine Ancora candidates include:
- Jamie Boychuk, formerly of at CSX Transportation
- Fredrick DiSanto, chairman and CEO at Ancora Holdings, the parent company of Ancora Alternatives, a U.S. Steel shareholder
- Robert Fisher Jr., president and CEO of George F. Fisher Inc., a private investment company
- Dr. James Hayes, board of directors of Marine Electric Systems Inc., a privately held manufacturer of monitoring and control systems
- Alan Kestenbaum, founder and CEO of Bedrock Industries Group
- Roger Newport, Previously served as CEO of AK Steel Holding Corp.
- Shelley Simms, general counsel and chief compliance officer of Philadelphia-based Xponance
- Peter T. Thomas, member of board of directors of Berry Global Group
- David Urban, managing director of BGR Group, a lobbying and public relations firm
Ancora owns a 0.18% stake in the company, according to a press release from U.S. Steel.
U.S. Steel said, “The board will present its recommendation regarding director nominees in the company’s proxy statement and other materials, to be filed with the Securities and Exchange Commission and mailed to all stockholders eligible to vote at the 2025 annual meeting.” A date for that meeting has not been set.
Cleveland-Cliffs Inc. went public with an offer to buy U.S. Steel after the bid was rejected in summer of 2023. Nucor and Cleveland-Cliffs were reportedly considering a joint bid to purchase U.S. Steel, according to a story by Barron's.
Indiana’s Gary Works is U.S. Steel’s largest manufacturing plant, according to the company’s website. It can handle more than 7.5 million net tons of raw steel annually, as reported by Indiana Capital Chronicle.
