Arconic, Elliott Management End Bitter Proxy Fight Stock Price Barely Affected by Agreement

By Boselovic, Len | Pittsburgh Post-Gazette (Pittsburgh, PA), May 23, 2017 | Go to article overview

Arconic, Elliott Management End Bitter Proxy Fight Stock Price Barely Affected by Agreement


Boselovic, Len, Pittsburgh Post-Gazette (Pittsburgh, PA)


For all the heated rhetoric spewed during the four-month proxy fight between Arconic and activist hedge fund Elliott Management, investors greeted Monday's announcement of a peace treaty with barely a whimper.

Arconic shares finished the day at $27.63, up 5 cents on news that the specialty metals parts maker had agreed to put three more representatives of the $32 billion hedge fund on its board of directors. Arconic also agreed to elect its entire board annually and do away with a requirement for a supermajority vote of shareholders on some matters, changes that the company had said earlier this year that it would make.

The agreement marks a significant achievement for Elliott, which controls about 13.2 percent of Arconic's shares. The activist hedge fund has a track record of convincing targets of the wisdom of its advice.

The settlement, which will be filed with the U.S. Securities and Exchange Commission, averts a showdown at Arconic's shareholder meeting Thursday in Purchase, N.Y., where investors were scheduled to vote on opposing slates of four directors offered by Arconic and Elliott.

It comes a week after Glass Lewis, which advises pension funds and other large investors on how to vote in proxy matters, backed Elliott's slate of directors. The endorsement was probably the last straw for Arconic, according to Carol Levenson, research director of Gimme Credit, a corporate bond research firm.

"This looks like mainly a governance coup ... with no promises regarding changes to the business or financial model," she wrote in a note to clients Monday.

Ms. Levenson wrote that Elliott's involvement at the company adds to her concerns about Arconic being able to reduce the debt load the company took on when it was spun out of Alcoa in November.

Instead of choosing from competing slates of directors, Arconic shareholders will vote Thursday on a unified slate of four directors, including three nominated by Elliott: - former Precision Castparts executive Christopher L. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Arconic, Elliott Management End Bitter Proxy Fight Stock Price Barely Affected by Agreement
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.