Hedge fund urges Cliffs to spin off assets, double dividend
Jan 28 (Reuters) - New York-based hedge fund Casablanca Capital LP picked up a 5.2 percent stake in Cliffs Natural Resources Inc and urged the iron ore producer to spin off of international assets and double its annual dividend.
Cliffs slashed its 2013 dividend to 60 cents per share in 2013 from over $2 in 2012, according to Thomson Reuters data.
Casablanca also said Cliffs should convert its U.S. assets to a master limited partnership (MLP) and "significantly" cut costs.
An MLP derives most of its cash flows from real estate, natural resources and commodities.
Cliffs shares have nearly halved in value in the past year, compared with a 19 percent rise in the S&P 500 index.
- Police hunt for motive as search for Malaysian jet spans hemispheres |
- Crimeans vote on union with Russia as troops build up rapidly |
- Malaysian PM says lost airliner was diverted deliberately |
- Democrats seek ways to limit Obamacare fallout after Florida defeat
- Indian Ocean poses daunting challenge in search for missing Malaysia plane