Arconic Stock Rises After CEO Steps Down

Apr 18, 2017, 01:27
Arconic Stock Rises After CEO Steps Down

Arconic said Kleinfeld's action "showed poor judgment" on his part.

The ouster comes after the company's board learned that he sent a letter directly to Elliott Management, an institutional investment group that has been pushing for Kleinfeld's ouster, without authorization from the board.

Arconic Inc ARNC.N said on Monday Chief Executive Klaus Kleinfeld resigned after the USA specialty metals maker found he sent a letter in "poor judgment" to Elliott Management, with whom it is embroiled in a proxy war and which used the chance to again criticize the company's board. The internal battle between Kleinfeld and Elliott had been going on ever since the company was created by a split with the commodity aluminum production half of what used to be Alcoa, Inc., that company is now Alcoa, Corp.

Arconic's shares jumped eight per cent to $28 per share following the news on Monday morning in NY.

Elliott reported in March that Spirit AeroSystems had said Lawson breached a non-compete clause in his retirement contract by consulting for Elliott, a view the hedge fund has said it disagreed with.

Elliott Management, the activist hedge fund run by Paul Singer, has made some shocking claims about Arconic's newly departed CEO, who resigned Monday amid an ongoing effort by the activist fund to persuade the company to get a new chief. Elliott said it believed that Lawson's work as a consultant or his potential role as Arconic CEO were not in violation of the non-compete clause.

Elliott was not immediately available for comment.

Klaus Kleinfeld agreed to leave his job as a result of a challenge from the company's largest shareholder, Elliott Management Corp.

Arconic shares initially surged by as much as 9 percent following the news of Kleinfeld's resignation.

YOU MIGHT ALSO LIKE
  • Bale ruled out of Champions League game against Bayern

    Their two defeats during that time came against Barcelona in April 2011 (0-2) and Schalke in March 2015 (3-4). Bayern has only managed two wins in 12 matches against Madrid at the Bernabeu.

    April the giraffe is finally having her baby: Watch livestream

    The much-awaited fourth calf of April the giraffe has yet to arrive, making a few curious followers doubt the pregnancy. HARPURSVILLE, N.Y. (AP) — A NY zoo's livestream video of its pregnant giraffe is showing her giving birth.
    USA  sending 'dozens' more troops to Somalia

    USA sending 'dozens' more troops to Somalia

    Africa Command spokesman Pat Barnes told VOA on April 14. "It gives them the tools to help themselves", DeLeon said. The troops arrived in their dozens in Somalia's capital city on April 2 from the 101st Airborne Division in Ft.
  • Zlatan Ibrahimovic praises Luke Shaw

    Zlatan Ibrahimovic praises Luke Shaw

    The United Kingdom people and the fans can watch this match on TV and online with the help of Sky Sports 1/HD and it's Sky Go . We have another home game next Saturday and we have to try and win it", Moyes said.

    Finally! April the Giraffe in active labor

    Keepers described April as "out of it", Thursday, noting "distracted behavior versus her normal inquisitive, treat-begging self". The shutdown didn't last long, however, and fervent April watchers were once again allowed their favorite Beckettian pastime.

    Jared Kushner omits some foreign contacts on security form

    Dina Powell, a former partner at Goldman Sachs, now serves on the National Security Council, and officially as an aide to Ivanka. I don't think somebody like that belongs in the White House and I can't imagine why Trump put him in there in the first place.
  • Russia's spurned singer tapped as Eurovision 2018 contestant

    Russia's spurned singer tapped as Eurovision 2018 contestant

    Channel One , Russia's TV network, rejected both options and announced they won't broadcast this year's the competition. Kiev will host the final of the Eurovision Song Contest on May 13 after two semi-finals earlier that week.

    Gwinnett County Officer under Investigation for Assaulting Handcuffed Man

    In this undated Gwinnett County Police Department photo, Master Police Officer Robert McDonald poses for an official portrait. The results will be turned over to the county district attorney, who will decide whether to prosecute McDonald.
    Key Abu Sayyaf commander killed in Philippine military clashes

    Key Abu Sayyaf commander killed in Philippine military clashes

    Norwegian Kjartan Sekkingstad, 56, was released a year ago after Askali received US$638,000 as ransom payment. Askali, who used the nom de guerre Abu Rami, had partly served as an Abu Sayyaf spokesman in recent years.
  • Snapchat denies CEO's dismissal of 'poor' India

    Snapchat denies CEO's dismissal of 'poor' India

    Snap, which owns the Snapchat app, has denounced the former employee's claims as "ridiculous" to several India media sites . Snapchat's App Store Rankings on iOS are down to one star thanks to angry Indian users, over Evan Spiegel's comment .

    Emma Morano, world's oldest person, dies in Italy at age 117

    But it was also down to a rather unusual diet of three eggs - two raw - each day for more than 90 years. She survived several hardships including leaving an abusive marriage and the death of her only son.

    Kremilin: Putin told Tillerson why US-Russian ties in bad state

    He said the US attack on the Syrian air base "was carried out in violation of global norms". -Russian ties and identify problems. Peskov also said Putin had given Tillerson his views on the situation in Syria, and how it was likely to develop.
popular