Hedge fund calls top of cycle
Monday, July 28, 2008 : PermalinkSydney Morning Herald- The ownership structure of some of Australia’s largest mining companies could be set for a major change after New York hedge fund Harbinger Capital Partners has indicated it believes commodities prices could be nearing their peak.
Harbinger, which has substantial stakes in Australian miners Fortescue Metals, Murchison Metals, Midwest and Moly Mines, has emerged as an opponent of US iron ore miner Cleveland-Cliffs’ proposed $US10 billion acquisition of coalminer Alpha Natural Resources.
Cliffs – which has an 85 per cent stake in West Australian iron ore miner Portman Mining – wants to merge with Alpha to form a more diversified supplier to the steel industry. But Harbinger, which owns 18.4 per cent of Cliffs, has told the US Securities and Exchange Commission it believes the deal is "not in the best interest of shareholders".
Tags: corp-ltd, financial-contagion, independent-companies, managment-corporation, mistrust, new-marketplace, oracle, takeover, time-zones
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