Boston, MA 06/20/2014 (wallstreetpr) – Cliffs Natural Resources Inc (NYSE:CLF) management can undergo fundamental changes. Casablanca Capital LP, the 5.2% beneficial owner of Cliff, has urged the shareholders to vote for the fundamental changes in the management of Cliff. It has criticized the company for value destruction in the company.
The New Nomination
Casablanca Capital has issued a letter to Cliffs Natural Resources Inc (NYSE:CLF)’s shareholders in respect to the Casablanca’s nomination of new directors in the Board of Directors. It has nominated six director candidates for the board. They can vote for them at the company’s Annual Meeting of Shareholders to be held on July 29, 2014. Casablanca urged the shareholders to vote for a new leadership. It is termed as the GOLD proxy card.
The Failures Of Management
Casablanca mentioned about the failures of previous CEOs of the company. It termed the board as a refuge for failed CEOs. Casablanca held the previous CEOs responsible for the value destruction of the company. The Previous CEOs never displayed the business acumen. Casablanca stated that they don’t deserve even a single vote. They are not deemed to be appointed as the members on any public company board.
Call For Change
Now it wants the shareholders to analyze the worsening situation and consider the new highly qualified and independent candidates nominated for the board of directors. It can be the start of a change to create value for Cliffs Natural Resources Inc (NYSE:CLF). The next Annual Meeting will show what the shareholders think and want. Seeing the present condition of the company, even the investors are not confident of the company. Cliff is lagging behind its peers. Also, the company is facing the margin pressure. The demand is low, and the supply is high of the iron ore that is making it more difficult for Cliffs Natural Resources Inc (NYSE:CLF) to survive in the industry.
