Plans Major Investment if Named CEO Amid Activist Push to Halt Nippon Deal
Alan Kestenbaum, a veteran of the steel industry, has expressed his willingness to make a substantial personal investment in United States Steel Corp. (U.S. Steel) if the company abandons its planned merger with Nippon Steel Corp. and he is appointed as its next CEO.
“I want to have a stake in something that I’m going to be involved in,” Kestenbaum stated in an interview Monday. “If I get the chance to run the show, I’ll invest in myself.”
Kestenbaum’s comments follow a push by activist investor Ancora Holdings Group to derail the $14.1 billion Nippon deal, which was blocked by the Biden administration earlier this month. Ancora has nominated nine candidates to U.S. Steel’s board, including Kestenbaum, with the aim of replacing current CEO David Burritt.
Kestenbaum, currently CEO of private equity firm Bedrock Industries Group, is known for his turnaround expertise. In 2017, he acquired U.S. Steel’s Canadian assets, rebranded them as Stelco, and led a seven-year reorganization that culminated in a $2.7 billion sale to Cliffs. Despite his track record, there is no guarantee Kestenbaum will be appointed CEO, as Ancora holds only 0.18% of U.S. Steel’s outstanding shares.
Kestenbaum indicated he supports Ancora’s plan to “fix” U.S. Steel but refrained from revealing specifics. He emphasized his experience in boosting morale, improving operations, and installing effective leadership teams.
While willing to invest enough to become U.S. Steel’s largest shareholder, Kestenbaum criticized the current stock price as overvalued, adding, “I intend to take a major position in U.S. Steel—assuming the price is right.”
This leadership shakeup, combined with Ancora’s activist efforts, could significantly reshape the Pittsburgh-based steel giant’s future trajectory.
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