Activist Hedge Fund’s Plan For Cliffs Natural Resources Destined For The Scrap Heap

Forbes – Hedge fund activism is all the rage these days. But sometimes the turnaround artists get it wrong.

Take the case of activist hedge fund Casablanca Capital and its successful ouster of the board of Cliffs Natural Resources CLF +7.22% in June after it won a heated proxy contest. Casablanca, which is headed by former Ronald Perelman lieutenant Donald Drapkin, crafted a detailed plan to not only spin or sell the company’s money losing Bloom Lake mine in Quebec but also to convert the company’s U.S. mining operations into a master limited partnership, which would open up the 167 year old company’s cash flow to its shareholders.

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