Ancora Seeks Board Overhaul to Block U.S. Steel-Nippon Deal

Ancora Holdings Group has acquired a 0.18% stake in U.S. Steel and is challenging the planned $15 billion takeover by Japan's Nippon Steel, alleging that U.S. Steel's board and CEO David Burritt are prioritizing the deal due to potential personal financial gains exceeding $100 million. In a bid to reshape the company, Ancora has nominated nine independent directors, including former Stelco CEO Alan Kestenbaum, and is advocating for a strategic focus on U.S. Steel's turnaround rather than pursuing the sale. The Biden administration recently blocked the takeover over national security concerns but extended the deadline for negotiations. U.S. Steel maintains that its partnership with Nippon Steel is the best option for American jobs and supply chains, opposing Ancora's influence. Ancora also aims to secure a $565 million breakup fee from Nippon Steel if the deal does not proceed. Both U.S. Steel and Nippon have filed lawsuits against the Biden administration's decision, seeking to overturn the block on the acquisition.