Mining Co. Seeks Shareholder Support Against Hedge Fund

Aug 25 2008 | 1:00am ET

Mining company Cleveland-Cliffs Inc. is urging investors not to give an activist hedge fund effective veto power over a proposed acquisition that the hedge fund opposes.

The company recommended that shareholders reject a bid by Harbinger Capital Partners to increase its stake in Cleveland-Cliffs to as much as one-third. Cleveland-Cliffs needs to win the votes of two-thirds of shares to approve the $8.1 billion deal for Alpha Natural Resources.

Harbinger, which is Cleveland-Cliffs’ largest shareholder with a 15.57% stake, argues that the takeover of Alpha is not in the best interests of shareholders. Earlier this month, the hedge fund—which has focused on media companies recently, including Cablevision and The New York Times Co.—asked Cleveland-Cliffs to hold a shareholder vote, required under Ohio law, that would allow Harbinger to increase its stake to between 20% and one-third.

The vote is scheduled to be held on Oct. 3.


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

FATCA for Hedge Funds: Eight Common Pitfalls

Sep 1 2015 | 10:56am ET

FATCA is now a way of life for those in the financial industry and most professionals...

 

Editor's Note