Ancora Holdings Group announced Monday its plan to reshape U.S. Steel Corp., pledging to make the company “great again” by replacing its leadership and halting a contentious $14.9 billion merger with Nippon Steel.
In a public letter, Ancora, now an investor in U.S. Steel, called for the ousting of CEO David Burritt and the installation of a nine-member independent board of directors, led by Alan Kestenbaum, the founder of Bedrock Industries Group. Ancora criticized Burritt and the board for prioritizing the failed Nippon deal over the company’s financial health and operational performance.
Criticism of U.S. Steel Leadership
The letter accused Burritt of neglecting efficiency and risk management, blaming the board for enabling what it described as a “perilous trajectory.” Ancora also dismissed the ongoing lawsuit by U.S. Steel and Nippon seeking to reverse President Joe Biden’s December 2023 block of the merger, calling the legal effort baseless.
“There is no legal precedent for overturning the decision,” Ancora wrote, citing analysis from attorneys at Baker McKenzie, Morgan Lewis & Bockius LLP, and Kirkland & Ellis LLP.
Leadership Shake-Up Proposal
Ancora has proposed Kestenbaum, who led Canadian steelmaker Stelco to a 450% shareholder return after acquiring it in 2017, as U.S. Steel’s next CEO. The activist investor believes Kestenbaum’s expertise in the metals sector will help the company pivot from the failed Nippon deal and restore its competitive edge.
