ISS, Glass Lewis Back Casablanca In Cliffs Fight

Jul 18 2014 | 11:44am ET

Casablanca Capital has won the backing of two influential proxy advisories in its battle to take control of miner Cliffs Natural Resources, the hedge fund said.

Both Institutional Shareholder Services and Glass Lewis & Co. are strongly backing its slate of six nominees to Cliffs’ 11-member board of directors, Casablanca said in a statement. The hedge fund wants Cliffs to spin off its international operations and to restructure its U.S. business as a master-limited partnership. It also wants to install Lourenco Goncalves as CEO.

Cliffs’ annual meeting is scheduled for July 29.

Casablanca has rejected Cliffs’ offer of two seats on the board, arguing that the company has suffered through “an extended period of gross underperformance and poor decisionmaking that has led to significant shareholder value destruction.” At least two of the hedge fund’s nominees will be elected later this month, as Cliffs has nominated only nine candidates.

Cliffs has decried Casablanca’s campaign as “costly and distracting.”


In Depth

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Cash: An Asset In Adolescence

Aug 31 2017 | 3:34pm ET

If the investment industry has a rebellious teenager in the house today, that teenager...

 

From the current issue of