Cliffs attacks Casablanca’s strategy
Jun 23, 2014 | 01:12 PM
| Nat Rudarakanchana
NEW YORK Cliffs Natural Resources Inc. has pushed back against activist investor Casablanca Capital LP, criticizing the hedge funds leadership candidate and its corporate vision for the iron ore producer.
"Casablanca has been instigating for changes meant to bring about short-term gains at the expense of long-term value," Cliffs board of directors wrote in a June 23 letter to shareholders, calling Casablancas plan the "value-destroying short-term agenda of a single shareholder."
"Casablanca has indicated that it wishes to hold its stake in Cliffs common stock for no more than 18 months," the letter said, citing conversations with Casablanca. The New York-based hedge fund bought most of its 5.2-percent stake in Cliffs in November 2013, which means that it may not maintain its roughly $200-million stake beyond May 2015. ....
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