U. S. Steel: A Stockholder's Dream or Nightmare?

Ladies and gentlemen, buckle up! We're diving headfirst into the fiery world of U. S. Steel, where the Board of Directors has been playing a high-stakes game of chess with the company's future. The latest move? A definitive proxy statement and stockholder letter that's got everyone talking. Let's break it down, shall we?



First things first, the Board has been on a roll. They've transformed U. S. Steel from a blast furnace dinosaur into a modern, innovative steel producer. How? By investing in electric arc furnaces (EAF) and divesting non-core assets. The result? A 38% EAF capability in active domestic flat-rolled operations, significantly reduced leverage, and a price target jump from $11 in 2019 to $42 in 2025. That's right, folks! We're talking about a 282% increase in just five years. BOOM! Earnings crushed estimates!

But wait, there's more! The Board's capital allocation strategy has delivered 1-, 3-, and 5-year total shareholder returns (TSR) above peers. Since Dave Burritt took the helm in May 2017, U. S. Steel has returned $1.6 billion to stockholders via dividends and share repurchases. That's a lot of greenbacks, folks!

Now, let's talk about the elephant in the room: Ancora Holdings Group. They're running a proxy contest, trying to take control of U. S. Steel by replacing the CEO and Board with a slate of unqualified, subpar nominees. The Board calls their plan "questionable" and "option-limiting." Ouch! That's a low blow, but it's not without merit. Ancora's nominees lack the experience and qualifications needed to steer U. S. Steel through these turbulent waters.

The Board's response? A robust strategic alternatives review process that involved contacting 54 potential participants, signing confidentiality agreements with 19 parties, and receiving eight bids of at least $40 per share. The final all-cash bid from Nippon Steel Corp. at $55 per share represented a 142% premium. That's right, folks! The Board played hardball and won.

But the Board isn't resting on its laurels. They've launched VoteforUSSFuture.com to provide stockholders with additional information and resources about U. S. Steel's history of and commitment to driving stockholder value. They're also urging stockholders to vote "FOR" all 10 of U. S. Steel’s highly qualified director nominees on the WHITE proxy card and DISCARD any gold proxy cards they may receive from Ancora.

So, what's the verdict? Is U. S. Steel a stockholder's dream or nightmare? Based on the Board's track record, it's a no-brainer. U. S. Steel is a modern, innovative producer with superior financial performance and returns to stockholders compared to its peers. The company's transformation and strategic initiatives have not only improved its market position but also ensured that stockholders receive maximum value for their investments.

But don't just take my word for it. Do your own research, and make an informed decision. After all, it's your money on the line. And remember, folks, the market hates uncertainty. So, stay tuned for more updates on this high-stakes game of chess. It's going to be a wild ride!