Seeking Alpha

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.
Comments (2)
  • chunghk
    , contributor
    Comments (305) | 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 (305) | 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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