WASHINGTON (dpa-AFX) - United States Steel Corp. (X) has strongly criticized Ancora Catalyst Institutional's recently proposed strategic plan, calling it inconsistent and unrealistic. Ancora's plan claims to deliver $75+ per share but simultaneously supports a $55 per share cash deal with Nippon Steel, raising questions about their true intentions.
U.S. Steel highlighted the benefits of its diversified business model, which balances integrated mini mills and blast furnace capabilities. The company emphasized that its transformation into a modern steel producer has positioned it to deliver strong returns for stockholders. Ancora's plan, which includes reversing mini mill investments and selling Big River Steel, was described as outdated and risky, potentially leading to volatile earnings and reduced valuation.
The Nippon Steel deal, supported by over 98% of voting shareholders, has faced opposition from Ancora in the past. However, Ancora has recently shifted its stance, now backing the transaction. U.S. Steel questioned the independence of Ancora's nominees, given their sudden change of position.
Additionally, U.S. Steel defended its litigation strategy, validated by a fresh review ordered by the Committee on Foreign Investment in the United States (CFIUS). The company urged stockholders to reject Ancora's proxy contest and support U.S. Steel's board nominees to ensure continued value creation and stability.
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