| Harbinger Capital Partners, the activist hedge fund founded by Philip
Falcone, opposed Cleveland-Cliffs proposed acquisition of Alpha
Natural Resources. Harbinger owns 18% of Cleveland-Cliffs, an iron ore
mining company. Because the deal requires approval from two-thirds of
Cleveland-Cliffs' shareholders, Harbinger's support is important for
the transaction. Cleveland-Cliffs defended the deal saying that
acquiring the coal-mining company would add reserves of metallurgical
coal as demand from steel-makers rise. Steel manufacturers
ArcelorMittal and Posco have also acquired coal mines this year. In a
filing with the SEC, Harbinger said that it may try to change
Cleveland-Cliffs' management, board of directors, and strategy to
increase shareholder value. |
