Activist Pick for US Steel CEO Eyes Major Stake If Given Top Job

Activist investor Ancora Holdings has nominated Alan Kestenbaum, the former CEO of Stelco, as a potential replacement for United States Steel Corporation's (X) current CEO, David Burritt. Ancora, which has built a stake in U.S. Steel, is pushing for a change in leadership and a shift in strategy following the collapse of the company's merger agreement with Japan's Nippon Steel.

Ancora's nomination of Kestenbaum comes as the activist investor seeks to rally shareholders around a plan to oust Burritt and abandon the litigation aimed at salvaging the blocked Nippon Steel deal. Instead, Ancora wants U.S. Steel to collect the $565 million breakup fee from Nippon Steel and focus on operational improvements and financial reforms.



Kestenbaum's nomination is part of Ancora's plan to replace U.S. Steel's CEO and abandon litigation aimed at salvaging the blocked Nippon Steel deal. This strategy aligns with U.S. Steel's goal of prioritizing internal changes to restore shareholder value, rather than seeking external rescue through a merger or sale.

Kestenbaum's unique qualifications and experience make him an ideal candidate to lead U.S. Steel through this challenging period. As the former CEO of Stelco, he successfully turned around the Canadian steelmaker before its acquisition by Cleveland-Cliffs in a $2.8 billion deal last year. This experience demonstrates his ability to lead a steel company through difficult times and achieve positive results.



Ancora's proposed strategy of abandoning the Nippon Steel deal and pursuing the breakup fee could have both positive and negative impacts on U.S. Steel's financial outlook and market position. Pursuing the breakup fee could provide U.S. Steel with a significant cash infusion, which could be used to improve its financial situation. However, abandoning the merger could lead to a loss of potential long-term investments and synergies that the merger was expected to bring.

In conclusion, Ancora's nomination of Alan Kestenbaum as CEO of U.S. Steel is a strategic move that aligns with the company's focus on operational improvements and financial reforms. Kestenbaum's unique qualifications and experience in turning around steel companies make him an ideal candidate to lead U.S. Steel through its current challenges and help the company achieve its goals. However, the ultimate impact of Ancora's proposed strategy will depend on how U.S. Steel manages the transition and executes its new strategy.