NEW YORK (TheStreet) -- Shares of Cliffs Natural Resources Inc. (CLF) are soaring, up 9.10% to $18.10, after activist investor Casablanca Capital LP said it won control of the board after a six month proxy fight, clearing the way for the breakup of the iron ore producer, Bloomberg reports.
Casablanca said all six of its nominees were elected to Cliffs' 11 member board.
Cliffs shareholders voted today at its annual meeting.
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Casablanca has urged Cliffs to take measures including raising its dividend and spinning off foreign assets. It has also proposed a new CEO, Bloomberg said.
Cliffs has reported two consecutive quarters of losses following a slump in iron ore prices.
TheStreet Ratings team rates CLIFFS NATURAL RESOURCES INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CLIFFS NATURAL RESOURCES INC (CLF) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, unimpressive growth in net income, poor profit margins, weak operating cash flow and generally high debt management risk."