Steel Mills

Ancora says plan for USS would yield higher value than Nippon deal

Written by Ethan Bernard

April 8, 2025

Investment firm Ancora Holdings Group said it has a strategy that, if implemented, would lead to a higher shareholder value than the current Nippon Steel bid for U.S. Steel.

This is in connection with its “nomination of nine highly qualified director candidates for election to the company’s board of directors at the 2025 annual meeting of stockholders scheduled for May 6,” according to a letter from the firm on Monday.

The firm said it is filing a “definitive proxy statement with the US Securities and Exchange Commission.” Recall that Ancora’s intention to replace USS leadership was first announced in late January.

Ancora said its five-point plan could achieve a target “pro forma total return of $75.67” per share to stockholders if the Nippon deal is “formally terminated” vs. the $55-per-share value of the Nippon play for USS.

However, the investment firm, if it achieves its leadership goals, vowed to continue to pursue the deal with Nippon if it passes through.

President Trump recently ordered a new Committee on Foreign Investment in the United States (CFIUS) review of the Nippon/USS deal. It is to be completed within 45 days.

One plank in Ancora’s plan to improve shareholder value is selling the Big River Steel operation in Osceola, Ark., for “estimated proceeds of $8 billion, netting $7.6 billion after taxes.”

Among the leadership changes sought is to replace current USS CEO David Burritt with former Stelco CEO Alan Kestenbaum.

Nippon declined to comment on the Ancora letter. USS did not return a request for comment.

Ethan Bernard

Ethan Bernard is managing editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years, starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA. in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.

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