Harbinger urges Cleveland-Cliffs sale: report

(Reuters) - The chief of U.S. hedge fund Harbinger Capital Partners, the largest shareholder of Cleveland-Cliffs Inc (CLF.N: Quote, Profile, Research), has begun pushing the iron ore pellet maker to put itself up for sale, The Wall Street Journal said.

Phil Falcone, who wants Cleveland-Cliffs to take advantage of the steel boom, reckons the company could fetch as much as $130 a share, or about $14 billion, the paper said, citing a person close to Harbinger.

The move comes a week after Cleveland-Cliffs said it agreed to acquire coal miner Alpha Natural Resources Inc (ANR.N: Quote, Profile, Research) for about $8.3 billion to expand its coal assets and capitalize on the boom in the global steel industry.

In a regulatory filing made after the deal announcement, Harbinger Capital, which owns about 18.36 percent of Cleveland-Cliffs common stock, expressed concerns about whether the Alpha deal was in the best interests of shareholders.

Cleveland-Cliffs and Harbinger Capital could not be immediately reached for comment.

(Reporting by Dhanya Skariachan in Bangalore; Editing by Paul Bolding)