This shareholder battle could get bloody — “Godfather” style.
Klaus Kleinfeld, the embattled boss of aluminum giant Arconic, drew chuckles at a Wednesday conference as he likened billionaire Paul Singer to a gangster from the Hollywood classic.
“Klaus, don’t take it personal. It’s just business,” Kleinfeld told the crowd, channeling Michael Corleone.
Reps from Singer’s activist hedge fund Elliott Management — which is looking to unseat Kleinfeld and shake up the company’s board — were in the audience as Kleinfeld spoke at a Yahoo Finance conference in New York.
They showed little reaction.
Arconic, which was spun off from Alcoa in November, has been fighting off Elliott Management’s calls for Kleinfeld’s ouster as CEO. The $31 billion hedge fund, which has a 12-percent stake in Arconic, has also nominated five people to the company’s board.
Elliott has been speaking with management for more than a year but its battle with the company went public late last week.
In a letter sent to Arconic’s shareholders late Tuesday night, Elliott Management called Kleinfeld a “uniquely charismatic figure” who used his relationships to “secure his continued employment.”
“Elliott believes a CEO’s focus must be on his day job, especially when he has presided over the ongoing delivery of abysmal results to the company’s shareholders for years,” the hedge fund wrote, referring to Kleinfeld’s board-level involvement with at least 13 other organizations.
Elliott’s letter was in response to a letter Arconic’s 12 independent board members sent to shareholders on Monday, which defended Klaus’ track record.
“At this crucial time, we believe that continuity of leadership, an unwavering focus on building our business and delivering on our promises and the continued active involvement of our strong, independent Board will be critical to delivering strong shareholder returns,” Arconic’s board members wrote Monday.
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