Activist investor Ancora Holdings is preparing to wage a proxy battle at U.S. Steel and wants the company to turn the page from its failed marriage with Nippon Steel, according to people familiar with the matter.

The Cleveland-based activist investor intends to push U.S. Steel to end litigation aimed at rescuing the Nippon Steel deal and instead collect a $565 million breakup fee.

Activist investor Ancora Holdings is preparing a proxy battle against U.S. Steel to replace its leadership and shift its strategy following the failed $14 billion merger with Nippon Steel Corp (TYO:5401),

Ancora has nominated nine nominees for U.S. Steel’s 12-member board including former Stelco (TSX: STLC) CEO Alan Kestenbaum, who previously revitalized the Canadian steelmaker before its acquisition by Cleveland-Cliffs (NYSE: CLF ), according to the report.

Activist investor Ancora Holdings has built a stake in U.S. Steel and wants the steelmaker to drop its merger agreement with Japan's Nippon Steel, the Wall Street Journal reported on Sunday, citing sources.

The activist investor also intends to rally shareholders around a plan to oust US Steel’s top boss David Burritt, says a Wall Street Journal report.

Activist investor Ancora Holdings has acquired a stake in US Steel and is urging the steelmaker to abandon its merger agreement with Japan’s Nippon Steel, according to a Wall Street Journal report. Ancora intends to encourage shareholders to remove US Steel’s CEO David Burritt,