In Rare Deal for U.S., Government Owns a Piece of U.S. Steel

National security attorney Antonia Tzinova was quoted in an S&P Global Commodity Insights article reviewing the merger agreement between Nippon Steel and U.S. Steel, specifically the so-called "golden share" given to the U.S. government. This share, one unit of Class G preferred stock, offers the government part ownership of the company, along with the right to appoint an independent director, close or idle existing U.S. Steel facilities, change the company name and move its headquarters. Ms. Tzinova noted that golden shares are common in Europe but rare in the United States, given that they afford the government active involvement in corporate management.

"That means the government literally owns equity, even if it's nominal," she explained. "This is new in the sense that it's structured in a way that typically, I haven't seen in the U.S."

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