Steel Mills

Ancora abandons plan to take over leadership of USS

April 9, 2025

Investment firm Ancora Holdings Group has halted its play for U.S. Steel’s board, citing Nippon Steel’s proposed $55-per-share bid for USS “gaining momentum.”

Ancora said on Wednesday it was withdrawing its nomination of director candidates for election at U.S. Steel’s annual shareholder meeting on May 6.

Recall that the investment firm aimed to unseat U.S. Steel CEO David Burritt and replace him with former Stelco CEO Alan Kestenbaum.

The move came after President Trump on Monday ordered the Committee on Foreign Investment in the United States (CFIUS) to conduct a new review of the deal. It is to be completed within 45 days.

USS and Nippon “may have succeeded in having productive conversations with the Trump administration to address concerns and discuss significantly increased capital commitments,” Ancora said.

Note that CFIUS delivered a split decision in December. President Biden then blocked the deal. And his administration subsequently moved back the date to unwind the deal until June.

Commenting on Trump’s action, Ancora said, “We imagine this is why labor leaders, policy experts, and stockholders have recently suggested they expect the sale will be approved.”

Ancora also cited alleged “entrenchment tactics” by U.S. Steel. It said those included “ignoring” Ancora’s requests to postpone the annual meeting.

When asked for comment, USS told SMU, “The U.S. Steel board and management team remain focused on delivering the proposed historic levels of investment in American steelmaking.”

The company added: “We appreciate the input of our stockholders and look forward to continuing to work closely with President Trump and his administration to finalize a significant investment from Nippon Steel.”

Nippon Steel declined to comment.

USS slams Ancora

U.S. Steel has been highly critical of Ancora’s plan for the steelmaker, calling it “blundering” and “value destructive.”

Ancora had claimed it would increase USS shareholder value to a projected $75.67 per share. The investment firm said it would accomplish that in part by selling off Big River Steel – U.S. Steel’s EAF flat-rolled steel mill in northeast Arkansas.

Additionally, USS said, “Ancora’s assertions that there has been a history of underinvestment and lagging performance ignore the company’s transformation into a modern, innovative steel producer with a portfolio balanced between integrated mini-mills and blast furnace capabilities.”

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.