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

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

Concerned About Your HFT Exposure? Hedge It!

Mar 26 2015 | 1:06pm ET

High-frequency trading has been a persistent storyline for several years. The trading...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note