The war of words between Arconic and an activist hedge fund intensified on Monday.
The independent members of the board of the aluminum-products manufacturer turned up the heat on Paul Singer’s Elliott Management, saying they fully supported Chief Executive Klaus Kleinfeld.
“We are confident that we have the right strategy and the right team, and that the company is in the best position it has enjoyed since the financial crisis,” Arconic’s 12-person board wrote in a letter to shareholders.
Just three months ago, Arconic completed its spinoff from Alcoa to become a standalone company.
In November 2015, Elliott initiated a friendly stake in Alcoa but warned that it would be reviewing the investment on a “continuing basis.”
Elliott now holds a 12.1 percent stake in Arconic and recently proposed a new CEO and five board members.
Shares of Arconic rose 1.2 percent, to $26.20, on Monday.
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