Arconic and Elliott Management Investors Await Update

Arconic's investors, including Elliott Management, are eagerly waiting for an update on the company's restructuring efforts.

Elliott Management, a hedge fund that has a significant stake in Arconic, has been pushing for changes at the company, including the sale of its aluminum business.

Elliott Management's efforts have led to a significant shake-up at Arconic, with several top executives leaving the company.

Investors are holding their breath as they await news on the company's progress.

Arconic Corporation has been in the news recently, and I'd like to give you a quick rundown of some of the key updates.

Arconic Corporation Names Marcelo Morgueta Chief Financial Officer on September 23, 2023.

Arconic Corporation Appoints Chris Ayers as Chair of the Board on August 25, 2023, and also announced CEO Changes on the same day.

Arconic Corporation (NYSE:ARNC) dropped from several indices, including the S&P Global BMI Index, S&P/TSX Global Mining Index, S&P 1000, S&P 600 Materials, S&P 600, S&P TMI Index, and S&P Composite 1500, all on August 21, 2023.

Arconic and Apollo Global Management completed their acquisition on August 18, 2023.

The acquisition was also approved by the European Commission on August 14, 2023.

Arconic Corporation's Equity Buyback announced on November 16, 2022, expired on August 17, 2023.

Funds managed by affiliates of Apollo Global Management and Irenic Capital Management acquired Arconic Corporation from a group of shareholders on August 17, 2023.

Here's a list of the indices that Arconic Corporation (NYSE:ARNC) dropped from on August 21, 2023:

Arconic Corporation's earnings results for the second quarter ended June 30, 2023, showed revenue of $1.99B.

In 2017, Elliott Management Corporation launched a proxy fight to acquire Arconic, a leading global supplier of lightweight metals.

Elliott's proposal was to acquire Arconic for $24.5 billion, with the intention of taking the company private.

The proxy fight was a contentious one, with Elliott facing opposition from Arconic's board of directors.

Alcoa, a leading global aluminum producer, had to restate its financial results due to a change in accounting principles.

The company's management team acknowledged the error and cooperated with the SEC to rectify the issue.

Alcoa's restatement of financial results led to a reevaluation of its business transactions, including a review of its revenue recognition policies.

As a result, Alcoa revised its revenue and cost of goods sold for the affected periods.

The restatement had a significant impact on Alcoa's financial statements, resulting in a substantial change in its reported earnings.

Elliott Management Corp is working to boost Arconic's sale process by addressing potential liabilities.

These liabilities stem from Arconic's building and construction systems division, which makes facades, windows, and framing products.

The division's Reynobond PE panels were used in the cladding of London's Grenfell Tower apartment complex, where over 70 people were killed in a blaze last year.

Elliott has proposed a structure to place these liabilities in a separate entity, called ringfencing, which has been used by other industrial conglomerates to limit exposure to similar legal claims.

Arconic's shares rose 3.3 percent to $21.51 on the news, giving the company a market capitalisation of $10.4 billion.

Elliott would also roll its 11 percent stake into the winning bid for the company, allowing it to retain its equity in Arconic while other shareholders get cash.

Arconic has asked Apollo, as well as a buyout consortium led by Blackstone Group LP and Carlyle Group LP, to submit new offers for the company on Friday.

Arconic's board plans to meet next week to review the offers.