Activist Ancora drops U.S. Steel campaign after Trump orders review of Nippon Steel bid

Activist investor Ancora said on Wednesday it is withdrawing its nominations for director candidates on the board of U.S. Steel after President Donald Trump ordered a fresh review of Japan's Nippon Steel's bid for the domestic steelmaker.

This comes a day after U.S. Steel said Ancora Holdings, which owns less than 1% stake in the company, claims to be in support of the transaction following its previous attempts to undermine the planned merger.

The investor, which recently unveiled a plan that could deliver a cash offer of $75 per share, has said it had no intention of standing in the way of the $55 per share Nippon deal.

Ancora said on Wednesday it was suspending its campaign at U.S. Steel, as it suspects the companies had taken steps to mitigate national security concerns.

Trump on Monday directed the Committee on Foreign Investment in the United States, which scrutinizes foreign investments for national security risks, to review Nippon's bid for U.S. Steel to help determine if "further action" was appropriate, raising hopes of the deal going through.

The U.S. president had previously opposed Nippon's pursuit to buy the 123-year-old steelmaker as he pledged to radically limit foreign access to domestic markets to ensure the supply chain for essential goods would be 100% American.

Ancora had launched its boardroom challenge early this year and nominated nine candidates to U.S. Steel's board, looking to oust CEO David Burritt.

It had also called on the steelmaker's board to delay its annual stockholders meeting until after June 18. Currently, the meeting is scheduled to take place on May 6.