Reportedly, Harbinger Capital Partners Funds is not a big fan of the potential Cleveland-Cliffs (CLF: sentiment, chart, options) /Alpha Natural Resources (AMR: sentiment, chart, options) merger. Harbinger is the largest shareholder of CLF, and believes the deal for ANR is "too much, too fast." The fund stated in a Securities and Exchange Commission briefing that the deal is "unacceptably risky." Harbinger is looking to acquire up to 1/3 of CLF, noting that it wants a greater say in the company's plans ahead of the shareholder vote on the purchase of ANR. CLF has to approve of Harbinger's purchase, and the company is suggesting that shareholders reject Harbinger at an October 3 vote.

The hedge fund did try to squash fears, saying that it doesn't want to control CLF nor does it want board representation. Harbinger just wants to stop the "radical, transformative transaction." The fund currently holds 15.6% of CLF, which is more than 16.6 million shares. At last check, CLF was more than 8.5% higher in the wake of this news, bringing its year-to-date gain to 47%. ANR is nearly 1% higher as we head through the midday hour, a mere drop in the bucket compared to its 52-week gain of 205%.