Activist Investor Prepares Proxy Battle at U.S. Steel to Oust CEO and Block Nippon Steel Merger
Activist investor Ancora Holdings is preparing a proxy battle against U.S. Steel, seeking to overturn the company's merger deal with Japan's Nippon Steel and oust CEO David Burritt, according to a report by the Wall Street Journal.
Ancora has nominated nine director candidates, including former Stelco CEO Alan Kestenbaum, for the company's 12-person board. The investor is not pursuing a sale of U.S. Steel but aims to influence the company's strategy and leadership.
The move comes after President Joe Biden blocked Nippon Steel's $14.9 billion bid for U.S Steel earlier this month, citing national security concerns. The companies have since sued the Biden administration over the blocked deal.
Ancora, U.S. Steel, and Nippon Steel did not immediately respond to requests for comment outside regular business hours.