Steel Industry Veteran Alan Kestenbaum Ready to Invest in US Steel
Alan Kestenbaum, a veteran in the steel industry, has expressed his willingness to make a significant personal investment in United States Steel Corp. (X) if the proposed merger with Nippon Steel Corp. is abandoned and he is appointed as the company's chief executive.
Kestenbaum, the former CEO of Stelco Holdings Inc., believes in taking an ownership stake in companies he actively participates in. He has proposed an operational plan to address challenges faced by the Pittsburgh-based company, should he be given the opportunity to lead it.
Despite Ancora Holdings Group, an activist investor, holding only 0.18% of outstanding shares, Kestenbaum supports their plan to abandon the Nippon Steel deal. He is confident in his ability to make US Steel more successful.
Kestenbaum has a history of successful turnarounds. In 2017, he acquired US Steel's Canadian assets out of bankruptcy, rebranded it as Stelco, and oversaw a successful seven-year reorganization.
While the current stock price may be too high for Kestenbaum, he is willing to invest if it becomes more favorable. He intends to become the largest shareholder of US Steel upon investing.
US Steel, however, has expressed concerns about Kestenbaum's intentions due to his recent dealings with Cliffs. The company remains committed to the Nippon Steel acquisition, believing it to be the best option for the company.