Ancora urges U.S. Steel to delay annual meeting for clarity

CLEVELAND - Ancora Holdings Group, LLC, a significant shareholder of United States Steel Corporation (NYSE: X), which currently trades near its 52-week high at $40.11 and has seen an impressive 8.23% gain in the past week, is advocating for a postponement of the company’s 2025 Annual Meeting of Stockholders. According to InvestingPro data, the company, valued at $9.03 billion, currently appears slightly overvalued based on its Fair Value calculations. The investment firm cites the need for greater transparency regarding the blocked sale of U.S. Steel to Nippon Steel Corporation and the company’s future plans.

Ancora’s leadership, including Chairman and CEO Fredrick D. DiSanto and President of Ancora Alternatives LLC James Chadwick, expressed concern over the lack of detailed information provided to stakeholders. They argue that the proxy statement issued by U.S. Steel lacks critical details about the halted merger and the company’s contingency strategies. This has left shareholders and other stakeholders, such as labor representatives, without sufficient insight into the company’s direction. InvestingPro analysis reveals the company is currently burning through cash, with negative free cash flow of $1.37 billion in the last twelve months, adding weight to stakeholders’ concerns about future strategy.

The investment group suggests that delaying the Annual Meeting until after the June 18th deadline within the merger agreement with Nippon would allow for a more informed voting process on the election of directors and the company’s trajectory. Ancora challenges the Board to present valid reasons for not postponing the meeting.

Despite the possibility of a second review by the Committee on Foreign Investment in the United States (CFIUS), Ancora contends that the Trump administration’s stance against the merger has not changed, citing national security concerns mentioned by Vice President J.D. Vance and Secretary of State Marco Rubio.

Ancora presents itself as an alternative path forward for U.S. Steel, proposing the leadership of steel industry CEO Alan Kestenbaum and a slate of qualified directors to improve the company’s performance and secure jobs for its unionized workforce. While the company has maintained dividend payments for 35 consecutive years, InvestingPro data shows three analysts have recently revised their earnings expectations downward for the upcoming period. Get access to 12 more exclusive ProTips and comprehensive analysis with an InvestingPro subscription.

Ancora Holdings Group, founded in 2003, is known for its investment advisory, wealth management, and insurance services. The firm has a history of collaborating with union groups and public pension plans to deliver long-term value.

The information in this article is based on a press release statement from Ancora Holdings Group, LLC.

In other recent news, United States Steel Corporation (U.S. Steel) is navigating a complex legal landscape as its merger with Nippon Steel North America faces delays. The U.S. Department of Justice has requested an extension for briefing deadlines and rescheduled the oral argument regarding the blocked merger, originally prohibited by President Biden due to national security concerns. This legal challenge has left the merger’s future uncertain. Meanwhile, Nippon Steel is in discussions with the U.S. Department of Commerce to revive its bid to acquire U.S. Steel, following President Trump’s suggestion to consider the bid as an investment rather than a purchase.

In a related development, executives from U.S. Steel and Nippon Steel are pursuing meetings with the Trump administration in an attempt to salvage their $15 billion merger. Despite these efforts, both Presidents Biden and Trump have expressed opposition to the deal. Additionally, President Trump’s announcement of a 25% tariff on Canadian imports has sparked a rise in U.S. steel stocks, including U.S. Steel, as investors anticipate potential benefits for domestic producers. The tariffs align with Trump’s trade policies aimed at protecting American industry.

These developments come amid ongoing discussions about trade policies and their effects on the steel industry, with President Trump asserting that tariffs have empowered U.S. steel companies. The market has responded positively to these tariffs, reflecting investor sentiment on the potential advantages for domestic steel producers.

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