So it’s come to this: Cliffs Natural Resources (CLF) essentially begging shareholders to stand up Casablanca Capital and use management’s white proxy card to vote for its nine directors. From Cliffs’ letter to investors:
As a shareholder of Cliffs, you will face an important decision regarding the future of your investment at our 2014 Annual Meeting of Shareholders, which is scheduled to be held on July 29, 2014. As you may be aware, a hedge fund, Casablanca Capital, is seeking to elect a majority slate of six directors and to appoint a handpicked replacement CEO with virtually no relevant mining industry experience. If elected, we believe the dissident nominees will support Casablanca's potentially value- destructive proposals, which include a break-up of your Company.
Shares of Cliffs Natural Resources have dropped 2% to $13.86 at 10:17 a.m. today–and yes, the damage is specific to Cliffs. Rio Tinto (RIO) has dipped 0.1% $51.56 despite getting downgraded today, while BHP Billiton (BHP) has gained 0.9% to $67.37.
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