Casablanca Capital has built up a 5.2% stake in Cliffs Natural Resources (CLF), the Wall Street Journal reports, adding that the hedge fund wants the iron-ore miner to split itself up into its domestic and international operations.
Casablanca's activism comes after Cliffs was the worst-performing stock in the S&P 500 in the past year and is the index's most shorted stock.
The sides have been in talks for a month, discussions that Cliffs said have been productive. The company noted that it has has strengthened its board and taken measures to improve its financial and operating performance. It has also been replacing senior management.