Jan. 27 (UPI) — Activist investor Ancora called for a shakeup in U.S. Steel leadership on Monday and adding new members to the board of directors after the company’s failed sale to Nippon Steel.
Ancora, which also has investments in companies like Norfolk Southern and RB Global, charged that U.S. Steel’s CEO David Burritt was “unfit for leadership” for continuing to pursue between U.S. Steel and Nippon Steel and called for his ouster.
The investment group said it will nominate nine candidates for U.S. Steel’s board of directors at its annual meeting of stockholders to pursue a turnaround of a standalone U.S. Steel.
“The slate includes installing Alan Kestenbaum, a steel industry legend who delivered total shareholder returns of more than 450% at Stelco Holdings Inc., as a replacement for Mr. Burritt,” Ancora said in a statement.
“We expect the investment community will agree that any steel company would be fortunate to have Mr. Kestenbaum assume such a role.”
U.S. Steel issued a response Monday morning, charging that Ancora’s plans would not serve in the best interest of the company and believes that a partnership with Nippon is still the best road for U.S. Steel to travel.
“With Nippon Steel, U.S. Steel remains an American company, and its headquarters will stay in Pittsburgh, its iconic name will not change, and its products will remain mined, melted, and made in America,” U.S. Steel said in its rebuttal.
“U.S. Steel’s partnership with Nippon Steel is the only path that enables the necessary know-how, technology and investment to secure the future of U.S. Steel — including no less than $1 billion to Mon Valley Works and approximately $300 million to Gary Works as part of the $2.7 billion committed to investing in [Biologics License Application]-covered facilities.”
Former President Joe Biden blocked the deal between Nippon Steel and U.S. Steel before leaving office and current President Donald Trump said he would do the same. Nippon and U.S. Steel have sued the government for its actions,