Arconic CEO Resigns After 'Unauthorized' Letter To Hedge Fund
From Hedge Funds
April 18, 2017 - 1:20pm
Shares of Arconic Inc (NYSE: ARNC) were trading down Tuesday after an initially positive market reaction to the departure of CEO Klaus Kleinfeld.
Kleinfeld resigned Monday after sending an unauthorized letter to activist stakeholder Elliott Management, according to Arconic’s announcement of his departure.
The hedge fund, which by its own account has a 13.2 percent stake in Arconic, has pushed for a management change and board turnover at the light metals manufacturer.
Arconic, an aluminum fabricator, is the product of a company split in 2016, when the 128-year-old Alcoa Corp (NYSE: AA) was spun off as a mining, refining, smelting and power business. Kleinfeld, 59, was Alcoa’s CEO from 2008 until the company split in 2016, according to his corporate bio.
‘A Surprising And Positive Move’
Arconic’s board has lost credibility, Deutsche Bank analyst Jorge Beristain said in a note, adding that Kleinfeld’s exit is a “surprising and positive move.”
Elliott Management’s proxy fight has brought attention to “lapses in judgment” at Arconic, including non-disclosed ...Full story available on Benzinga.com
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