Ancora urges U.S. Steel to delay annual meeting amid CFIUS review

CLEVELAND - Ancora Holdings Group, LLC, a significant shareholder of United States Steel Corporation (NYSE: X), has called for a postponement of the steelmaker's 2025 Annual Meeting of Stockholders. This request comes in response to a new review by the Committee on Foreign Investment in the United States (CFIUS) of U.S. Steel's pending sale to Nippon Steel Corporation, ordered by President Donald Trump today. The steel giant, currently valued at $10.08 billion, has seen its stock trade near its 52-week high of $44.87, showing strong momentum with a 31.1% year-to-date return according to InvestingPro data.

Ancora believes that the outcome of the CFIUS investigation, which is to be concluded within 45 days, is crucial for shareholders to make an informed decision on the proposed $55 per share merger with Nippon. The investment firm has expressed concerns that proceeding with the Annual Meeting, scheduled for May 6, prior to the review's completion, would only serve the interests of the current board members seeking re-election. InvestingPro analysis indicates the company maintains a "GOOD" overall financial health score, though it faces challenges with relatively weak gross profit margins of 10.41% on its $15.64 billion in revenue.

The firm has nominated a slate of nine independent director candidates for election at the Annual Meeting, aiming to better position U.S. Steel for a potential standalone future amid the ongoing uncertainty surrounding the transaction.

Ancora, which provides investment advisory and wealth management services, has a history of supporting union labor and has been actively involved with union groups and public pension plans. The firm's alternative asset management division, Ancora Alternatives, invests in activism, multi-strategy, and commodities.

The information regarding Ancora's request and its reasons for advocating for a delay in the Annual Meeting is based on a press release statement. Ancora's stance is that complete and transparent information is essential for stockholders to vote knowledgeably on the future of U.S. Steel. This development adds a layer of complexity to the upcoming Annual Meeting and the potential merger with Nippon Steel.

In other recent news, United States Steel Corporation is at the center of significant developments that could impact its future. President Donald Trump has ordered a review of the previously blocked acquisition of U.S. Steel by Nippon Steel, potentially overturning a decision made by President Joe Biden. This review, conducted by the Committee on Foreign Investment in the United States, is awaited by investors as it could influence the steel industry's landscape. Meanwhile, Nippon Steel has postponed its proposed takeover of U.S. Steel for the second time, now expecting to close the deal in the second quarter of 2025, though it stated this would not impact its earnings.

BMO Capital Markets has downgraded U.S. Steel's stock rating from Outperform to Market Perform, citing ownership uncertainty amid ongoing discussions about the Nippon Steel transaction. The firm set a price target of $45.00, reflecting a cautious outlook. Additionally, U.S. Steel is defending its board against a takeover bid by Ancora Holdings Group, urging shareholders to support its current directors in an upcoming proxy contest. The board claims its strategic initiatives have delivered superior financial performance and promises a brighter future with a proposed transaction offering a 142% premium at $55 per share.

Nippon Steel's executives remain committed to pursuing a deal with U.S. Steel despite political challenges, with ongoing negotiations to reach a consensus on investment terms. These developments are being closely monitored by investors, given their potential to shape the future direction of both companies.

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