By svea herbst-bayliss
New York (Reuters) – An active investor is calling on Ancora Holdings to reach records from the United States Steel, starting from the Board of Directors's minutes to financial documents, where a campaign links to replace some members of the company and the CEO, according to a message seen by Reuters.
Ancora last month launched a challenge in the hall of the board of directors in the United States, where the famous American company is fighting in the court to save the integration of its plan with Nippon Steel in Japan. The company requests the US Court of Appeal to allocate the order of former US President Joe Biden, which led to the prevention of national security concerns. The United States said it would need to create hairstyles and close plants if the deal has been recruited.
Ancora's decision to take the so -called books and records request how the activist uses one of the legal tools available to try to win the battle of the possible board hall.
In her message – which was sent to Megan Bombak, Assistant General Adviser in the United States, Secretary of Securities and Companies Companies – Ancora Steel told us that he wanted to investigate “to commit potential violations in relation to … not sterile to the company (the lawsuit) … the trading plan The CEO of the company (David Burit).
According to the message, Ancora is looking for information to determine whether the council has violated its credit duties by filing the lawsuit and determining whether Burritt “sought to deliberate on non -public information.”
The investor currently has about 500,000 shares, or less than 1 %, in the United States, but he said he is planning to increase his position significantly. The value of the company, which was once the largest producer of individuals in the world, is $ 8.7 billion.
Last month, ANCora nominated nine directors for directors to the 12 -person US Steel Board of Directors, including CEO who could replace the CEO. The activist also wants the company to drop the lawsuit as the Federal Appeal Court is required to overturn Biden's decision to suspend the $ 14.9 billion deal.
By following the lawsuit, Ancora argued in the letter, by harming shareholders' shareholders, noting that it wants the administration and the council to focus on business reform.
The letter said: “In the continuation of the abuse of petition for the review, the board of directors istes money and resources in a desperate hope that () the merger will drop them great personal benefits.”
Ancora gave the company until February 24 to provide it with secret documents usually related to the proposed integration with the Nippon and Burritt trading plan, according to the message.
She wants to investigate whether the company's managers and officers “have violated their company's credit duties and the stock campaign” and learn more about Burritt trading in US steel stocks “with regard to integration discussions” and how to use it in advance 10B5-1 plan that allows the insiders to sell shares.
The American steel representative did not immediately respond to the comment.
Earlier this month, US President Donald Trump said that Nippon's offer would take an investment form instead of the purchase.
A spokesman for the Japanese government said earlier this month that Nippon was considering a bold change in the plan from his previous approach to buying American steel, and Prime Minister Shigro Ishiba called the decision to prevent the deal “unreal political intervention.”
Ancora has already identified Alan Kestenbauum, former CEO of Stelco Stelco, as a suitable alternative to Borite. Stelco was purchased by Cleveland-CLIFFS for a steel manufacturer last year.
The company has not yet determined the date of an annual meeting and held last year on April 30.
Ancora acquired a number of major companies and won the seats of the Board of Directors. Earlier this month, LKQ handed over two of the cars to be two seats from the Board of Directors to the investor and a year ago, Norfolk shareholders elected three managers nominated in Ancora to the Railways Council. Late last year, Norfolk, sarcher, pledged to work with Anura to add a new outlet to avoid another battle with the company.
(Participated in Svea Herbst-Bayliss reports; editing Aurora Elis)