Cliffs CEO prefers to sell assets rather than split into two firms

Cliffs Natural Resources (NYSE:CLF) wants to sell off non-core assets at the right price rather than split into two companies, new CEO Lourenco Goncalves tells WSJ.

One option floated by the Casablanca Capital hedge fund, which recently installed Goncalves as CEO in a board coup, had been to divide CLF and refocus the company around its five iron ore mines in Minnesota and Michigan; BHP Billiton and Timken recently carried out comparable de-mergers.

Other assets, such as coal mines in the U.S., iron ore assets in Australia and Canada and a suspended chromite project in Canada, have been less profitable; Goncalves' intention is to treat those less-profitable assets as non-core and seek to turn them around while entertaining offers to sell.

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Comments (2)
  • chunghk
    , contributor
    Comments (351) | Send Message
    CLF-No matter what trick Cornsalad manipulates, fate destined. Garage fire sale assets, no high or good return fetched at present economic climate. Political show. Tomorrow (8/26), downward again. $35 dreaming, why not $25. Thanks.
    25 Aug 2014, 07:55 PM Reply Like
  • chunghk
    , contributor
    Comments (351) | Send Message
    CLF-No easy find buyer uneconomical assets, even huge discounts. After Labor Day mild short squeeze, downward. Gary's genius directive versus Cornsalad's yelling "change" "$53 share". Professionally inexperienced destroyed $35 wishers. Nil admiration from Silverman Socks & Molly Stone, criticism by Zidi. God bless. Thanks.
    26 Aug 2014, 03:21 PM Reply Like
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