(Reuters) - Casablanca Capital LP said two independent proxy firms have recommended that shareholders of Cliffs Natural Resources Inc vote in favor of the hedge fund’s board nominees.
Cliffs is locked in a proxy battle with New York-based hedge fund Casablanca, which owns 5.2 percent of Cliffs stock and accuses the company of destroying shareholder value.
Institutional Shareholder Services and Glass Lewis & Co have issued strong recommendations in support of its campaign for the board changes, Casablanca said in a statement.
Casablanca wants to replace Cliffs’ CEO with its own nominee and a majority of board members with its candidates.
The iron ore and metallurgical coal producer offered Casablanca a third of the seats on its board in July in an attempt to settle a “costly and distracting” proxy contest.
The Cleveland-based company’s annual meeting is set for July 29.
Reporting by Supriya Kurane in Bangalore; Editing by Gopakumar Warrier