Casablance urges Cliffs investors to disregard Glass Lewis's recommendation

theflyonthewall.com

Casablanca Capital, the beneficial owner of approximately 5.2% of Cliffs Natural Resources shares, urged its fellow Cliffs shareholders to disregard Glass Lewis’s last minute reversal of its recommendation to vote for Casablanca’s GOLD card. On July 16th, both Institutional Shareholder Services and Glass Lewis recommended that Cliffs shareholders vote the GOLD proxy card in connection with Cliffs’ 2014 Annual Meeting of Shareholders on July 29, 2014. In response to the endorsement of Casablanca’s nominees, the incumbent board members maneuvered to keep their seats by removing two director candidates from their slate. This purported “solution,” however, would prevent shareholders from voting for any or all of Casablanca’s nominees, and would ensure that a majority of the incumbent directors, who have overseen the destruction of $9 billion in value at Cliffs, retain their positions. For this reason, Casablanca has not consented to any of its nominees being included on management’s white card. Casablanca encourages its fellow investors, and in particular Glass Lewis subscribers, not to be taken in by management’s cynical and desperate attempt to resist change. Even now, Glass Lewis has stated that it views Cliffs’ Board’s “decision to amend its proxy card after having seen our initial published recommendation with some suspicion,” and notes that “this change could be viewed as an attempt by the Board to simply ‘game’ our shareholder recommendation.”

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