Activist investor wants US Steel to drop Nippon deal

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Activist investor wants US Steel to drop Nippon deal
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US Steel said Ancora’s interests are not aligned with all shareholders

Activist investor Ancora wants US Steel shareholders to reject the takeover by Nippon Steel, the Wall Street Journal reported on Sunday.Insiders said Ancora, which has an approximately 0.18% stake in US Steel, is preparing a proposal to back out of the deal and remove chief executive David Burritt from his role. It also submitted nine nominees to stand for election to the steelmaker's board.

The transaction has received overwhelming support from our stockholders, communities and employees – including local union leadership."Earlier this month, former US President Joe Biden announced that he would block Nippon's $14.9 billion acquisition of US Steel, citing national security concerns.In response to Biden's decision, Nippon Steel and US Steel filed multiple lawsuits.A bid from Cleveland Cliffs in August 2023 launched a bidding war on US Steel.

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