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Ancora Reverses Stance, Supports Steel-Nippon Steel Merger

The activist investor withdraws its boardroom challenge after President Trump orders a national security review of the proposed deal.

An entrance to the U.S. Steel Great Lakes Works plant is seen in Ecorse, Michigan, U.S., September 24, 2019. Picture taken September 24, 2019. REUTERS/Rebecca Cook
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Overview

  • Ancora Holdings, once a staunch opponent of the U.S. Steel and Nippon Steel merger, has now declared its support for the transaction.
  • The reversal follows President Trump's directive to the Committee on Foreign Investment in the United States (CFIUS) to review the deal for national security risks.
  • Ancora has withdrawn its nine director nominations and ended its campaign to oust U.S. Steel CEO David Burritt.
  • The investor had previously proposed a separate $75 per share cash offer but stated it will not oppose the existing $55 per share deal.
  • U.S. Steel shareholders are preparing for upcoming meetings, with the company's annual stockholders meeting still scheduled for May 6 despite Ancora's request for a delay.