By Anna Alimani
In a January 27 open letter, Ancora Holdings announced an intended proxy fight against U.S. Steel’s current Board of Directors in regards to the company’s acquisition by Nippon Steel. In its announcement, Ancora, under its new proposed CEO and board, said it will not “solicit acquisition proposal from…any other partner (domestic or foreign).”
However, the odd timing of the announcement and the vague promise not to sell the company raises questions about the seriousness of the effort, as well as its unintended consequences.
U.S. Steel has made it clear that it needs the additional resources that result from a merger to continue its operations that have been slowing in the past years. With Ancora’s longtime ties to failed bidder Cleveland-Cliffs, all signs point to this proxy fight being a path of destruction for U.S. Steel if it…
