Power Struggle: Ancora Challenges Nippon Steel's US Steel Takeover

Ancora seeks to halt Nippon Steel's acquisition of US Steel, criticizing US Steel's CEO and board for prioritizing the sale. Ancora nominates new directors and a CEO to prioritize US Steel's turnaround and pursue a breakup fee. US Steel remains committed to Nippon's proposal, suspecting Ancora's intentions.

The ongoing dispute over the control of US Steel has intensified, with Ancora Asset Management challenging Nippon Steel's planned takeover. The asset manager recently acquired a 0.18% stake in US Steel and is pushing for significant leadership changes by nominating nine independent directors.

In an open letter, Ancora accused US Steel's current leadership of prioritizing their financial gain over the company's future by favoring Nippon's offer that could bring over $100 million. Ancora proposes Alan Kestenbaum as the new CEO, emphasizing the need for a strategic turnaround and aggressively pursuing a $565 million breakup fee.

US Steel, headquartered in Pittsburgh, is steadfast in its commitment to Nippon's acquisition, citing its strategic benefits for the industry. However, US Steel is wary of Ancora's motives, especially given its ties to rival bidder Cleveland-Cliffs, which had a failed bid for the company in the past.

(With inputs from agencies.)