Third Point details stakes in U.S. Steel, Kenvue in filing
By Svea Herbst-Bayliss
NEW YORK (Reuters) -Billionaire investor Daniel Loeb's hedge fund Third Point on Thursday detailed the size of its stakes in U.S. Steel and Kenvue, companies that shareholders hope will soon benefit from being bought by someone.
U.S. Steel has been waiting to be acquired by rival Nippon Steel, Japan's largest steel producer, since 2023, but the deal has been on hold since the Biden administration blocked it and the Trump administration in April ordered a new national security review.
At the end of the first quarter, Third Point owned 12.2 million shares of U.S. Steel, the so-called 13F filing released on Thursday showed.
Loeb told investors in a letter seen by Reuters that he had built the "meaningful stake" in U.S. Steel and that he was optimistic that a merger between the company and its Japanese rival Nippon Steel can be completed.
He has not publicly acknowledged the firm's position in Kenvue, the maker of Band-Aids and Tylenol, which is being pushed by other investors to consider divestments or even a sale of the entire company. Thursday's filing shows Third Point owned 8.9 million shares of Kenvue on March 31, 2025.
While the filings, which detail investment firms' stakes in U.S. stocks at the end of the previous quarter, are backward-looking, they are closely watched for investment trends.
Separately, Toms Capital Investment Management also built positions in U.S. Steel and Kenvue during the first quarter, according to its 13F filing. The firm owned 4.9 million shares in common stock of U.S. Steel at the end of the first quarter and 14.4 million shares of Kenvue, the filings show.
Toms Capital has pushed Kenvue to consider strategic alternatives, including a possible sale of the entire company or portions of it, sources familiar with the firm's engagement said.
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James Brower, a Morrison Foerster lawyer who represents clients in national security-related matters, said such agreements with the government typically are not disclosed to the public, particularly by the government. They can become public, but it's almost always disclosed by a party in the transaction, such as a company — like U.S. Steel — that is publicly held, Brower said. The mechanics of how a golden share would work will depend on the national security agreement, but in such agreements it isn't unusual to give the government approval rights over specific activities, Brower said. U.S. Steel made no filing with the U.S. Securities and Exchange Commission on Friday. Nippon Steel originally offered nearly $15 billion to purchase U.S. Steel in an acquisition that had been delayed on national security concerns starting during Joe Biden's presidency. As it sought to win over American officials, Nippon Steel gradually increased the amount of money it was pledging to invest into U.S. Steel. American officials now value the transaction at $28 billion, including the purchase bid and a new electric arc furnace — a more modern steel mill that melts down scrap — that they say Nippon Steel will build in the U.S. after 2028. Nippon Steel had pledged to maintain U.S. Steel's headquarters in Pittsburgh, put U.S. Steel under a board with a majority of American citizens and keep plants operating. It also said it would protect the interests of U.S. Steel in trade matters and it wouldn't import steel slabs that would compete with U.S. Steel's blast furnaces in Pennsylvania and Indiana. Trump opposed the purchase while campaigning for the White House, and using his authority Biden blocked the transaction on his way out of the White House. But Trump expressed openness to working out an arrangement once he returned to the White House in January. Trump said Thursday that he would as president have 'total control' of what U.S. Steel did as part of the investment. Trump said then that the deal would preserve '51% ownership by Americans,' although Nippon Steel has never backed off its stated intention of buying and controlling U.S. Steel as a wholly owned subsidiary. 'We have a golden share, which I control,' Trump said. Trump added that he was 'a little concerned' about what presidents other than him would do with their golden share, 'but that gives you total control.' The proposed merger had been under review by the Committee on Foreign Investment in the United States, or CFIUS, during the Trump and Biden administrations. The order signed Friday by Trump said the CFIUS review provided 'credible evidence' that Nippon Steel 'might take action that threatens to impair the national security of the United States,' but such risks might be 'adequately mitigated' by approving the proposed national security agreement. The order doesn't detail the perceived national security risk and only provides a timeline for the national security agreement. The White House declined to provide details on the terms of the agreement. The order said the draft agreement was submitted to U.S. Steel and Nippon Steel on Friday. The two companies must successfully execute the agreement as decided by the Treasury Department and other federal agencies that are part CFIUS by the closing date of the transaction. Trump reserves the authority to issue further actions regarding the investment as part of the order he signed on Friday.
