Elliott Management Corp. is a hedge fund management company from America that Paul Singer founded in 1977. He remained the head of the company as the CEO, and his pool of expertise and professional experience created him a portfolio valued at $8 billion. The hedge fund company is currently in the middle of a word fight with the present Arconic Inc. After a series of favorite claims, Elliott Management Corp. has scaled back the valuation of the aluminum parts maker as the company was in favor of a different leadership.
Last year, the Alcoa Corp. went through a major split up, and one of the main results was the Arconic Inc. However, it was only three months ago when the new enterprise managed to organize a thorough spinoff. As a result, Arconic Inc. became an independent company. However, since then the new independent members of the board have been deciding upon a new leadership.
Elliott Management Corp. invested in a share of Arcoa back in November 2015. Even though the business proposal had a friendly initiative, the hedge fund firm hold fast on its promise to keep a close eye on its investment on a regular basis. Since Elliot owns a 12.1% stake in Arconic at this moment in time, the company took the liberty to nominate a new CEO together with five members for the board.
On the other hand, the present members of the board who is a group of 12 persons favored Chief Executive Klaus Kleinfeld for their new leadership. This dispute in nominees soon led to a word fight between the two parties. The present board members supported their nominee with an open letter to their shareholders. The document explains that the company is on the right path for the first time since the financial crisis.
Elliott Management Corp. is now in pursuit of dethroning the present management of the new Arconic Inc. As a consequence, an Elliot report presented on Monday to regulators estimated that the aluminum parts maker would value $33 a share with their proposed CEO. This is a concerning claim as the same hedge fund estimated a stake of $54 for the new company. In light of the new Elliot report, the Arconic stake has actually increased to $26.20 in New York.
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