Trump admin considers letting U.S. Steel remain a standalone business

Members of the White House held conversations in recent weeks with Ancora, the activist investor pushing to keep U.S. Steel independent, Ancora Alternatives CEO Jim Chadwick tells Axios.

Why it matters: The administration is, at the very least, weighing the possibility of allowing U.S. Steel to go it alone.

The big picture: Nippon Steel's $14.9 billion attempt to buy U.S. Steel turned political last year, with the Biden administration blocking the deal citing national security concerns.

• The Trump administration has carried that torch onward, saying he wants U.S. Steel to remain domestically owned. President Trump more recently said he also wouldn't mind if Nippon Steel took a minority stake in the business.

Driving the news: Ancora's Chadwick says the firm spoke with Trump officials earlier this month in what he describes as a "fact finding exercise."

• The conversation, which occurred shortly before Japanese Prime Minister Shigeru Ishiba's visit to the White House, circled around the viability of U.S. Steel going it alone.
• Ancora has vehemently opposed the Nippon Steel merger, and has sought to nominate nine new board members to U.S. Steel. The activist investor has also identified Alan Kestenbaum, former CEO of Stelco, as their preferred CEO.

Yes, but: Nippon Steel had previously promised to inject new capital into the business, something Ancora currently isn't putting on the table (though it isn't ruling out the possibility in the future).

• There's also Cleveland-Cliffs, which has reportedly shown interest in a bid for U.S. Steel.
• In his final days as president, Joe Biden delayed an order for Nippon Steel to abandon the deal to June — leaving the door open for a comeback. Chadwick wants to see Trump shorten it to 30 days.

The White House has not replied to a request for comment.