U.S. Steel Faces Activist Investor Challenge, Demand for Company Records
Activist investor Ancora Holdings is intensifying its campaign against U.S. Steel, demanding access to various company records, including board minutes and financial documents.
According to a letter obtained by Reuters, Ancora is investigating potential wrongdoing related to U.S. Steel's ongoing lawsuit challenging President Biden's rejection of its merger with Nippon Steel and the trading activities of CEO David Burritt.
"We are investigating potential wrongdoing in connection with ... the company's futile (lawsuit) ... and the unusual trading plan of the company's CEO (David Burritt)," the letter states.
Ancora, which owns approximately 500,000 shares of U.S. Steel, intends to increase its position significantly. The investor has nominated nine director candidates to U.S. Steel's board, including a potential replacement for Burritt.
Ancora argues that continuing the lawsuit against the merger harms shareholders and urges management and the board to focus on improving the business.
The investor has set a deadline of February 24 for U.S. Steel to provide the requested documents. The company has declined to comment on the matter at this time.
Ancora has a history of targeting major companies and winning board seats. Recent successes include the appointment of two directors to LKQ's board and the election of three directors to Norfolk Southern's board.
Key Takeaways:
* Activist investor Ancora Holdings is demanding records from U.S. Steel.
* The investor is investigating potential wrongdoing related to the company's merger lawsuit and CEO's trading activities.
* Ancora has nominated nine director candidates to U.S. Steel's board.
* The company has until February 24 to provide the requested documents.