U.S. Steel Warns Investors of Ancora’s Contradictory, Value-Destructive Plan

SEATTLE (Scrap Monster): United States Steel Corporation (U.S. Steel), a Pittsburgh-based firm, warned investors about a number of shortcomings in the company's strategic plan, which was released by Ancora Catalyst Institutional, LP.

A news release from the company claims that Ancora's last-minute decision to back the business's $55 per share cash deal with Nippon Steel is consistent and further raises doubts among shareholders about its genuine intentions. After initially opposing the U.S. Steel merger with Nippon Steel, Ancora abruptly altered its mind and stated that it now hopes the deal gets finalized.

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According to the press release, Ancora's most recent "plan" to undo U.S. Steel's investments in micro mills is an antiquated tactic that would devalue stockholders' money. Additionally, Ancora's proposal to sell Big River Steel would raise earnings volatility and lower U.S. Steel's value multiple. Additionally, it indicated in the February 2025 conference call that it plans to bring Big River up to industry standards, which is highly inconsistent with this.

The business promised that the deal with Nippon Steel would safeguard jobs for future generations. It also advised investors to view Ancora's plans with extreme skepticism.