United States Steel has become an unlikely darling, with many parties vying for control of the century-old-plus American icon.
The interest hasn’t translated into significant gains for existing shareholders, though. Investors appear confused , and no one knows exactly how the U.S. Steel drama will end .
On Wednesday, Ancora , a Cleveland-based activist investor with about $10 billion in assets under management, held a conference call outlining its plan for the steel maker.
Ancora nominated a majority slate of directors on Jan. 27, making a play for control of the company. The call outlined a “multi-billion dollar capital investment plan to revitalize U.S. Steel,” led by Alan Kestenbaum, former CEO of Canadian steel maker Stelco.
Kestenbaum reflected on his success in turning around Stelco, which was sold to Cleveland-Cliffs in 2024 , adding he has a history of improving labor relations. Many U.S. Steel workers are represented by the United Steel Workers. U.S. Steel has a labor negotiation coming up in 2026.
Ancora, of course, wants U.S. Steel to abandon a proposed deal with Nippon Steel , which values U.S. Steel at $55 per share.
That deal faced stiff opposition from both sides of the political aisle. President Donald Trump said it was psychologically important for U.S. Steel to remain American-owned.
Control concessions by Nippon Steel and plans to invest billions didn’t sway American politicians. Trump did appear to soften his stance recently, saying at a press conference with Japanese Prime Minister Shigeru Ishiba that Nippon Steel would invest in U.S. Steel.
Nippon Steel and U.S. Steel declined multiple requests for comments about investment details.
The Nippon Steel deal emerged in late 2023 after Cleveland-Cliffs offered to buy U.S. Steel for about $35 a share in August 2023. Cleveland-Cliffs CEO Lourenco Goncalves hosted a combative January press conference where he indicated consolidation among large U.S. players could help restore consistent profitability to the sector.
Cleveland-Cliffs and America’s largest steel producer, Nucor , are reportedly interested in some U.S. Steel assets. Nucor would be interested in U.S. Steel’s electric arc furnace assets, which use electricity to melt scrap steel and other metallics.
Keeping track of things on the table: U.S. Steel could be sold to Nippon Steel, get an investment from Nippon Steel, be broken up into pieces, merge with Cleveland-Cliffs, or make a go of it as a standalone company investing in existing operations.
Investors are just waiting. U.S. Steel is down about 15% over the past 12 months, and the share price has bounced between roughly $30 and $40 since President Joe Biden indicated he would block the deal in early 2024.
Ancora’s main message was that U.S. Steel doesn’t need external capital to turn around operations. “It’s about brain power,” said Kestenbaum. Time will tell if that’s correct.
U.S. Steel looks like it could use capital. It’s America’s third-largest steel producer, and a relatively high-cost producer. Since 2021, U.S. Steel has made roughly $150 in per ton operating profit annually. Cleveland-Cliffs has made roughly $100 per ton over the same span. Nucor earned closer to $300 per ton. Nippon Steel is the world’s fourth-largest steel producer, and about three times the size of U.S. Steel, but its per-ton profit is closer to Cleveland-Cliffs and U.S. Steel than to Nucor.
U.S. Steel shares might have got a small Ancora boost on Wednesday. The stock closed up 2% at $39.04, while the S&P 500 and Dow Jones Industrial Average rose about 0.2%.
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At least for people who carry the APOE4 genetic variant, a juicy steak could keep the brain healthy.
Must even steak be politicised? The American Heart Association recently recommended eating more “plant-based” protein in a move to counter the Health and Human Services Department’s new guidelines calling for more red meat.
Few would argue that eating a Big Mac a day is good for you.
On the other hand, growing evidence, including a study last month in the Journal of the American Medical Association, suggests that eating more meat—particularly unprocessed red meat—can reduce the risk of Alzheimer’s in the quarter or so of people with a particular genetic predisposition.
The APOE4 gene variant is one of the biggest risk factors for Alzheimer’s.
You inherit one copy of the APOE gene from each parent. The most common variant is APOE3; the least is APOE2.
The latter carries a lower risk of Alzheimer’s, while the former is neutral. A quarter of people carry one copy of the APOE4 variant, and about 2% carry two.
APOE4 is more common among people with Northern European and African ancestry. In Europe the variant increases with latitude, and is present in as many as 27% of people in northern countries versus 4% in southern ones. God smiled on the Italians and Greeks.
For unknown reasons, the APOE4 variant increases the risk of Alzheimer’s far more for women than men.
Women’s risk multiplies roughly fourfold if they have one copy and tenfold if they have two. Men with a single copy show little if any higher risk, while those with two face four times the risk.
What makes APOE4 so pernicious? Scientists don’t know exactly, but the variant is also associated with higher cholesterol levels—even among thin people who eat healthily.
Scientists have found that cholesterol builds up in brain cells of APOE4 carriers, which can disrupt communications between neurons and generate amyloid plaque, an Alzheimer’s hallmark.
The Heart Association’s recommendation to eat less red meat may be sound advice for people with high cholesterol caused by indulgent diets.
But a diet high in red meat may be better for the brains of APOE4 carriers.
In the JAMA study, researchers at Sweden’s Karolinska Institute examined how diet, particularly meat consumption, affects dementia risk among seniors with the different APOE variants.
Higher consumption of meat, especially unprocessed red meat, was associated with significantly lower dementia risk for APOE4 carriers.
APOE4 carriers who consumed the most meat—the equivalent of 4.5 ounces a day—were no more likely to develop dementia than noncarriers. (
The study controlled for other variables that are known to affect Alzheimer’s risk including sex, age, physical activity, smoking, alcohol consumption and education.)
APOE4 carriers who ate the most unprocessed meat were at significantly lower risk of dying over the study’s 15-year period and had lower cholesterol than carriers who ate less. Go figure. Noncarriers, however, didn’tenjoy similar benefits from eating more red meat.
The study’s findings are consistent with two large U.K. studies.
One found that each additional 50 grams of red meat (equivalent to half a hamburger patty) that an APOE4 carrier consumed each day was associated with a 36% reduced risk of dementia.
The other found that older women who carried the APOE4 variant and consumed at least one serving a day of unprocessed red meat had a cognitive advantage over carriers who ate less than half a serving, and that this advantage was of roughly equal magnitude to the cognitive disadvantage observed among APOE4 carriers in general.
In all three studies, eating more red meat appeared to negate the increased genetic risk of APOE4.
Perhaps one reason men with the variant are at lower Alzheimer’s risk than women is that men eat more red meat.
These findings might cause chagrin to women who rag their husbands about ordering the rib-eye instead of the heart-healthy salmon.
But remember, the cognitive benefits of eating more red meat appear isolated to APOE4 carriers.
Nutrition is complicated, and categorical recommendations—other than perhaps to avoid nutritionally devoid foods—would best be avoided by governments and health bodies.
Readers can order an at-home test from any number of companies to screen for the APOE4 variant.
The Swedish researchers hypothesize that APOE4 carriers may be evolutionarily adapted to carnivorous diets, since the variant is believed to have emerged between one million and six million years ago during a “hypercarnivorous” period in human history.
The other two APOE variants originated more recently, during eras when humans ate more plants.
APOE4 carriers may absorb more nutrients from meat than plants, the researchers surmise. Vitamin B12—low levels have been associated with cognitive decline—isn’t naturally present in plant-based foods but is abundant in red meat.
Foods high in phytates (such as grains and beans) can interfere with absorption of zinc and iron (also high in red meat), which naturally declines with age. So maybe don’t chuck your steak yet.
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