Ancora Holds Investor Call to Address U.S. Steel’s Management and Governance Concerns
Ancora Holdings Group, a shareholder of United States Steel Corporation, has announced a live investor conference call scheduled for February 19th, 2025, at 10:00 a.m. Eastern Standard Time. The call, titled "A U.S. Solution for U.S. Steel," will be hosted by James Chadwick, President of Ancora Alternatives LLC, and Alan Kestenbaum, CEO candidate and the driving force behind the renowned turnaround of Stelco Holdings Inc.
Investor Call Details and Registration
The investor call aims to provide detailed analysis, address shareholder concerns, and offer a platform for an open Q&A session. Alan Kestenbaum will share insights on U.S. Steel’s current challenges and his vision for the company's future. Interested parties can register for the call at https://bit.ly/AncoraXInvestorWebinar.
Focus of Ancora’s Investigation
Ancora's efforts to address U.S. Steel's governance have expanded with the submission of a Section 220 books and records request. This formal request, filed under Delaware General Corporation Law, is intended to uncover key information about U.S. Steel’s management actions. The focus is on whether the company’s leadership, particularly the board, engaged in wasteful efforts and potentially breached their fiduciary duties during the stalled sale negotiations with Nippon Steel Corporation.
The request includes investigating possible insider trading violations by U.S. Steel executives, including CEO David Burritt. Ancora has raised concerns that a 10b5-1 trading plan was put into effect during a crucial time when strategic options, including potential sales, were still being reviewed. This plan’s trigger prices appeared suspiciously aligned with subsequent bids for the company, raising the question of whether insiders took advantage of market movements to benefit personally.
Governance and Leadership Scrutiny
In addition to investigating past actions, Ancora is looking into whether U.S. Steel's Board has been taking steps to improperly entrench itself ahead of the upcoming 2025 Annual Meeting. The firm’s request is aimed at gathering information that could inform potential shareholder actions, including litigation if necessary.
Ancora has also expressed a desire to engage with other shareholders to share information and empower them to act collectively if necessary. The firm is committed to addressing what it perceives as mismanagement and breach of fiduciary duties by U.S. Steel’s leadership.
Ancora’s Background and Strategic Goals
Founded in 2003, Ancora Holdings Group, LLC is an integrated investment advisory and wealth management firm that serves individuals and institutions across the United States. Ancora Alternatives, the firm’s alternative asset management division, invests across a range of strategies, including activism, multi-strategy investments, and commodities. Ancora has a strong history of supporting union labor and collaborating with public pension plans to ensure long-term value creation for all stakeholders.
