Cleveland-Cliffs’ largest stockholder loses its fight to buy a larger portion of the company.
CCI shareholders have rejected Harbinger Capital Partners’ plan to buy up to a third of CCI’s stock.
It was an attempt to block CCI’s proposed buyout of, and merger with, Alpha Natural Resources.
Harbinger has said the buyout and merger are too risky and not in CCI’s best interest.
Alpha is the country’s #1 producer of metallurgical coal.
It’s needed to manufacture steel.
Harbinger Capital Partners owns about 18% of CCI.
The people behind the hedge fund recently told federal regulators they wanted to ask CCI shareholders for permission to buy a larger interest in the company.