Cliffs director resigns, cites leadership issues

Aug 15, 2014 | 03:05 PM | Nat Rudarakanchana

Tags  Casablanca Capital, Cliffs Natural Resources, Lourenco Goncalves, Gary Halverson, Timothy Sullivan, iron ore, activist investor, hedge fund steel

NEW YORK — Iron ore miner Cliffs Natural Resources Inc. has seen tumultuous executive turnover in the wake of hedge fund Casablanca Capital LP’s proxy victory, including the resignation of one director and the departure of several executives, which have triggered significant severance payments.

Timothy Sullivan resigned from the Cleveland-based company’s board of directors Aug. 11, according to a U.S. Securities and Exchanges Commission (SEC) filing.

In his resignation letter, Sullivan criticized new directors that were nominated by New York-based Casablanca Capital, which won control of Cliffs earlier this month (amm.com, Aug. 5), claiming they ignored suggestions outside of their "pre-scripted plan" for the company and were unwilling "to engage the legacy directors in a meaningful way."....





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