Minority Investors Push for Change at U.S. Steel
By
Metal Center News Staff on
Jan 31, 2025
U.S. Steel rejected a push from activist investor Ancora Group to walk away from the Nippon Steel deal and replace nine of its board members. The U.S. Steel board has 12 members.
The Cleveland-based Ancora, a minority investor in U.S. Steel, proposed replacing U.S. Steel CEO David Burritt with Alan Kestenbaum, who served as CEO of Stelco Steel before its acquisition from Cleveland-Cliffs last year.
"U.S. Steel has an experienced and independent board of directors with a proven track record of acting in the best interests of the company and creating value for stockholders – as evidenced by their tireless efforts over the past year to complete the company’s value-maximizing transaction with Nippon Steel,” a release from U.S. Steel said.
“We remain confident that our partnership with Nippon Steel is the best deal for American steel, American jobs, American communities and American supply chains. 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."
The company said Ancora’s interests are not aligned with those of all U.S. steel shareholders. It also expressed concern with the involvement of Kestenbaum, given his connection to Cliffs and the steelmakers' previous attempt to acquire U.S. Steel.
“U. S. Steel’s partnership with Nippon Steel is the only path that enables the necessary know-how, technology and investments to secure the future of U. S. Steel – including no less than $1 billion to Mon Valley Works and approximately $300 million to Gary Works as part of the $2.7 billion committed to invest in BLA-covered facilities. The transaction has received overwhelming support from our stockholders, communities and employees – including local union leadership.”