Activist Investor Ancora Challenges U.S. Steel's Merger Plans

Activist investor Ancora Holdings is opposing U.S. Steel's merger with Nippon Steel and is pushing for leadership changes. Ancora has nominated candidates for U.S. Steel's board and aims to replace CEO David Burritt, amidst legal battles over blocked deals influenced by national security concerns.

Activist investor Ancora Holdings is making strategic moves against U.S. Steel's planned merger with Nippon Steel. According to sources reported by the Wall Street Journal, Ancora has acquired a stake in the American steelmaker, although the exact size remains undisclosed.

The activist investor is rallying shareholders to support a plan that would not only halt the merger but also replace U.S. Steel's CEO David Burritt. Ancora has proposed nine candidates for the company's 12-person board, featuring Stelco's former head Alan Kestenbaum as Burritt's potential successor.

The merger with Nippon Steel has faced political pushback, with both former Presidents Joe Biden and Donald Trump voicing their opposition, citing national security risks. Meanwhile, competitor Cleveland-Cliffs is reportedly exploring its own acquisition options in collaboration with Nucor, despite potential antitrust issues.

(With inputs from agencies.)