When it comes to unlikely alliances, Joe Biden and Donald Trump agreeing on something ranks right up there with cats and dogs sharing a milkshake. But a few months ago, these two polar opposites managed to find common ground… and Biden blocked Nippon Steel’s $14 billion takeover of U.S. Steel. Yep, America’s favorite steelmaker was deemed too important to fall into foreign hands. National security and all that jazz.

But let’s not be naive… Nippon Steel didn’t pack up and go home quietly. They’ve been embroiled in a legal battle ever since, desperately trying to salvage the deal. And now, it’s taken another surprising turn: Ancora Holdings, an activist investor, just showed up on the scene like Owen Wilson on Wedding Crashers. Their message? It’s time to call off this failed marriage with Nippon, fire the CEO, and get the company back on track.

First, some context. Nippon Steel’s offer was pretty sweet on paper: $55 a share, valuing U.S. Steel at over $14 billion. But Biden slammed the brakes, citing national security concerns… and, believe it or not, Trump chimed in with a “Yeah, what he said!” Nippon’s response? Of course, a lawsuit aimed at overturning the decision.

That’s where Ancora Holdings comes in, the Cleveland-based activist investor managing $10 billion in assets. Ancora has been quietly amassing a stake in U.S. Steel (currently sitting at 0.18%) and is now launching a proxy fight to shake things up. They’ve nominated nine new directors for U.S. Steel’s 12-member board, including former Stelco CEO Alan Kestenbaum, who has a reputation for turning struggling steel companies into revenue generators.

Their strategy is just to forget about the Nippon deal, collect the $565 million breakup fee, and focus on fixing the company’s real problems… like excessive capital spending, growing debt, and “nonexistent contingency plans,” as Ancora’s open letter put it.

U.S. Steel, for its part, isn’t exactly rolling out the welcome mat for Ancora. The company has doubled down on its commitment to Nippon, claiming the deal is the “best outcome” for its workers and the American steel industry. They even threw some shade at Ancora, accusing them of having “misaligned interests” and suggesting Kestenbaum has ties to Cleveland-Cliffs, a former bidder for U.S. Steel.

On the other hand, shareholders are stuck watching this teenage lunchroom argument play out. U.S. Steel’s stock, which is trading at $37.41, has been under pressure due to all this uncertainty. For context, that’s well below Nippon’s $55 per share offer. Ancora’s argument? U.S. Steel shouldn’t have sold itself to a foreign bidder in the first place. Instead, the company should focus on financial discipline and operational efficiency… you know, the boring stuff that actually makes businesses profitable.

Ancora’s push to oust CEO David Burritt and overhaul the board comes at a critical time. The Nippon deal is set to expire on June 18, and Cleveland-Cliffs is reportedly teaming up with Nucor to weigh another bid. Ancora, however, isn’t interested in shopping U.S. Steel around. They’re here to clean house and cash that breakup fee.

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Stock.News does not have positions in companies mentioned.