A New York-based asset manager has a significant share of the common shares of Cleveland-Cliffs, a U.S. producer of iron ore. The money manager would prefer that Cliffs pay or otherwise return $ 100 million “excess liquidity” for shareholders. The management resists the proposal, and instead calls for investment in the business. The Money Manager provides a partial alternative slate of directors.

A New York-based asset manager has a significant share of the common shares of Cleveland-Cliffs, a U.S. producer of iron ore. The money manager would prefer that Cliffs pay or otherwise return $ 100 million “excess liquidity” for shareholders. The management resists the proposal, and instead calls for investment in the business. The Money Manager provides a partial alternative slate of directors.
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Jay O. Light
James E. Sailer
Source: Harvard Business School
23 pages.
Publication Date: Sep 15, 1992. Prod #: 293051-PDF-ENG
Cleveland-Cliffs, Inc. HBR case solution