Ancora withdraws director nominations amid U.S. Steel sale progress

CLEVELAND - Ancora Holdings Group, LLC has announced the withdrawal of its director nominations for the upcoming United States Steel Corporation (NYSE: X) Annual Meeting, citing positive developments in U.S. Steel's potential $55 per share sale to Nippon Steel Corporation. The stock currently trades at $44.05, near its 52-week high of $45.50, reflecting market optimism about the deal. Recent dialogues between the companies and the federal government have reportedly made headway, addressing national security concerns and discussing increased capital commitments.

The investment firm's decision follows its repeated requests to U.S. Steel to postpone the Annual Meeting, scheduled for May 6, 2025, to ensure shareholders have complete information before voting. Ancora criticizes U.S. Steel for maintaining the meeting date despite the expected conclusion of a new governmental review shortly after. According to InvestingPro data, U.S. Steel has demonstrated strong momentum with a 29.77% return year-to-date, suggesting investors' confidence in the company's strategic direction.

Ancora's campaign initially began in response to the Executive Order issued by former President Biden, which blocked the deal. The firm has been a vocal critic of U.S. Steel's governance, particularly under the leadership of CEO David Burritt.

Despite withdrawing its campaign, Ancora expresses hope that the transaction will be approved, leading to beneficial outcomes for shareholders and stakeholders. The firm acknowledges the support from fellow stockholders and the United Steelworkers throughout its campaign.

Ancora Holdings Group, a supporter of union labor and investor in union groups and public pension plans, aims to deliver long-term value. The firm's services include investment advisory, wealth management, retirement plan services, and insurance solutions.

The information in this article is based on a press release statement.

In other recent news, United States Steel Corporation has been at the center of several significant developments. President Trump has reinstated a review of the halted merger between U.S. Steel and Nippon Steel North America, previously blocked by President Biden due to national security concerns. The Committee on Foreign Investment in the United States (CFIUS) is tasked with this review, with a recommendation expected by May 21, 2025. Ancora Holdings Group, a major shareholder of U.S. Steel, has proposed delaying the company's Annual Meeting until after the CFIUS review is completed to ensure shareholders have comprehensive information before making decisions. Ancora has also nominated new board candidates and does not oppose the $55 per share merger but seeks a postponement to allow for informed voting.

Additionally, BMO Capital Markets downgraded U.S. Steel's stock rating from Outperform to Market Perform, citing the uncertainty surrounding the potential transaction with Nippon Steel. The firm set a price target of $45.00, indicating a cautious outlook given the ongoing discussions and government considerations. These recent developments are being closely monitored by investors, as the outcomes could significantly impact U.S. Steel's future and the broader steel industry.

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