Cliffs Natural Resources, which is at the centre of a $US2.65 billion boardroom coup, has conceded it is likely to fall under the control of an activist hedge fund intent on breaking up its current structure and selling its assets.

In a transition that is likely to put the fifth-biggest iron ore export business in Australia on the selling block, Cliffs said overnight that hedge fund Casablanca Capital was likely to control six seats on the company’s 11 member board.