The Rising Influence of Rising Affluence

[Democritus_of_Abdera]

Re: Possible Proxy fight at CLF...

CLF has a large short position (about 1/3 of outstanding shares)...

If a proxy fight ensues, who votes the shares that have been shorted:

1) the person/fund who bought the shorted shares,
2) the person/fund who borrowed the shares,
3) the person/fund who lent the shares?

I presume that it is the person who bought the shorted shares.. And,I presume that the lenders include private funds that are CLF shareholders of record.

If these presumptions are true, then Casablanca might not get as many vote commitments from private funds as one might expect and, thus, not have much leverage without an open proxy fight.... this, of course, will take time.

or,

The private funds might need to call in their lent shares, requiring those holding short to cover.