Business North reports that a hedge fund with significant holdings of Cliffs Natural Resources stock is pushing for new board elections to install its own CEO.
Cliffs owns and operates several iron ore mines in Minnesota and Michigan, including three here on the Iron Range: Hibbing Taconite, United Taconite in Eveleth and Northshore Mining in Babbitt and Silver Bay. Casablanca Capital LP wants the company to push its stock price higher, criticizing what it calls the company’s under-performance.
This Cliffs takeover situation should be monitored with great interest here, as the only ways that companies can raise stock prices, to my limited knowledge, is cost (job) reduction, discovering a new continent or inventing something like the iPhone. Only one of those seems plausible in this situation.
Speak Your Mind