(Adds details on advisory firms' recommendations)
July 17 Casablanca Capital LP said two
independent proxy advisory firms have recommended shareholders
of Cliffs Natural Resources Inc vote in favor of the
hedge fund's bid to replace some of the members of the miner's
board of directors.
Institutional Shareholder Services (ISS) and Glass Lewis &
Co have issued strong recommendations in support of Casablanca's
campaign for board changes, the New York-based hedge fund said
in a statement late on Wednesday.
ISS is the largest proxy advisor for institutional
On Thursday, Cliffs said that Egan-Jones Proxy Services, a
smaller independent proxy advisory firm, had recommended that
shareholders vote for all of Cliffs' director nominees.
Cliffs, a Cleveland-based iron ore and metallurgical coal
producer, is locked in a proxy battle with Casablanca, which
owns 5.2 percent of Cliffs' stock and accuses the company of
destroying shareholder value.
Casablanca wants to replace Cliffs' chief executive officer
with its own nominee and six of the 11 board members, a
majority, with its candidates.
Cliffs said in a statement that ISS and Glass Lewis were
only recommending four of Casablanca's six nominees. Reuters was
not immediately able to obtain a copy of the proxy firms'
Since shareholders can only vote for one side's slate, and
Casablanca could vote its entire stake for the other two
nominees, Cliffs said Casablanca is likely to be able to elect a
majority to the board if shareholders follow the ISS and Glass
Cliffs offered Casablanca a third of the seats on its board
in July in an attempt to settle what it described as a "costly
and distracting" proxy contest.
Cliffs shareholders are set to vote on board appointments at
the company's annual meeting on July 29.
(Reporting by Supriya Kurane in Bangalore and Nicole Mordant in
Vancouver; Editing by Gopakumar Warrier and Paul Simao)