Tensions Rise: Ancora Holdings' Proxy Fight Over U.S. Steel-Nippon Deal

Ancora Holdings, an activist investor, is challenging U.S. Steel's merger with Nippon Steel. They've launched a proxy battle intending to replace CEO David Burritt and have nominated nine board candidates. This move comes after President Biden blocked Nippon Steel's $14.9 billion acquisition bid, which has led to a lawsuit.

Activist investor Ancora Holdings is set to initiate a proxy battle against U.S. Steel, urging the company to dissolve its merger agreement with Japan's Nippon Steel. This development was reported by the Wall Street Journal on Sunday, quoting unnamed sources.

Alongside the cancellation of the merger, Ancora aims to garner shareholder support to dethrone U.S. Steel's CEO, David Burritt. The investor has nominated nine candidates for election to the steel giant's 12-member board, including veteran Alan Kestenbaum, former chief of Stelco.

Declining to seek a buyer for the steelmaker, Ancora's actions come in the wake of former U.S. President Joe Biden's intervention in halting Nippon Steel's proposed $14.9 billion acquisition, sparking legal battles challenging the administration's decision.

(With inputs from agencies.)