Nippon Steel shareholders laud successful US Steel acquisition
Nippon Steel Corp. shareholders on Tuesday praised the Japanese steelmaker's successful acquisition of United States Steel Corp. despite initial opposition from the US government, but expressed concerns about the implications of a "golden share" given to Washington.
All three company proposals, including personnel appointments, were approved at Nippon Steel's shareholders meeting in Tokyo, despite a campaign by an investment fund urging shareholders to oppose the reappointment of President Tadashi Imai and Vice Chairman Takahiro Mori as directors.
The fund had taken issue with the company issuing to the US government a golden share in US Steel, giving it veto rights over important management matters, as part of the buyout.
A total of 1,257 people attended the meeting, around double the number of last year's meeting participants. Of the questions raised by shareholders in the one-hour, 56-minute meeting, around half were related to US Steel.
A participating shareholder in his 60s lauded the company's successful takeover of the US steelmaker, saying that " the penalty for an unsuccessful acquisition would have had a larger negative impact."
Another male shareholder said he hopes the US Steel purchase is used as an "opportunity to expand operations."
Meanwhile, a female shareholder said, "While I welcome the successful acquisition, most shareholders are probably worried whether the issuance of a golden share and the massive investments (by Nippon Steel on US Steel) will lead to shareholder returns."
[Copyright The Jiji Press, Ltd.]
Photo by Reuters
