We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Arconic (ARNC) CEO Klaus Kleinfeld Quits Amid Proxy Battle
Read MoreHide Full Article
Klaus Kleinfeld has stepped down as Chairman and CEO of Arconic by mutual agreement with the company’s board amid intense pressure from hedge fund, Elliott Management. He has also resigned as a member of the board.
Arconic, a global leader in multi-material, precision engineered products, noted yesterday that the move follows the findings of the company’s board that, without authorization by the board, Kleinfeld sent a letter directly to a senior officer of Elliott Management which the board decided was in “poor judgment”.
Elliott Management, which was founded by billionaire investor Paul Singer, had been actively seeking removal of Kleinfeld since January and has also suggested ways to improve the company’s performance and its share price. The hedge fund, which now owns a 13.2% interest in Arconic, has also nominated four new directors to the company’s board to be voted at its May 16 annual meeting.
With Kleinfeld’s resignation, Elliott Management’s core objective – a CEO change – has been realized, Arconic stated. The company, however, noted that the decision was not made in response to the proxy fight or Elliott Management’s criticisms of Arconic’s strategy and performance.
Arconic has appointed David P. Hess, an incumbent board member, as Interim CEO. Moreover, Patricia F. Russo, who has been serving as the Lead Director of Arconic since 2015, has been appointed as Interim Chair of the board.
The board is looking to hire a “world-class CEO” to ensure a smooth leadership transition for the company’s customers, employees and shareholders, Arconic noted. The company also said that Elliott must now decide whether to continue with its “highly disruptive and distracting” proxy fight or help Arconic in finding a new CEO for a smooth transition.
Kleinfeld led the successful transformation of former Alcoa Inc. that concluded in the launch of two independent, publicly traded companies – Arconic Inc. and Alcoa Corporation (AA - Free Report) – in Nov 2016.
Arconic’s shares closed around 3% higher at $26.69 yesterday. The company’s shares have gained around 44% year to date, outperforming the Zacks categorized Mining-Non Ferrous industry's gain of roughly 9.5% over the same period.
Amerigo Resources has an expected earnings growth rate of 325% for the current year.
Ternium has an expected long-term growth rate of 18.4%.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Arconic (ARNC) CEO Klaus Kleinfeld Quits Amid Proxy Battle
Klaus Kleinfeld has stepped down as Chairman and CEO of Arconic by mutual agreement with the company’s board amid intense pressure from hedge fund, Elliott Management. He has also resigned as a member of the board.
Arconic, a global leader in multi-material, precision engineered products, noted yesterday that the move follows the findings of the company’s board that, without authorization by the board, Kleinfeld sent a letter directly to a senior officer of Elliott Management which the board decided was in “poor judgment”.
Elliott Management, which was founded by billionaire investor Paul Singer, had been actively seeking removal of Kleinfeld since January and has also suggested ways to improve the company’s performance and its share price. The hedge fund, which now owns a 13.2% interest in Arconic, has also nominated four new directors to the company’s board to be voted at its May 16 annual meeting.
With Kleinfeld’s resignation, Elliott Management’s core objective – a CEO change – has been realized, Arconic stated. The company, however, noted that the decision was not made in response to the proxy fight or Elliott Management’s criticisms of Arconic’s strategy and performance.
Arconic has appointed David P. Hess, an incumbent board member, as Interim CEO. Moreover, Patricia F. Russo, who has been serving as the Lead Director of Arconic since 2015, has been appointed as Interim Chair of the board.
The board is looking to hire a “world-class CEO” to ensure a smooth leadership transition for the company’s customers, employees and shareholders, Arconic noted. The company also said that Elliott must now decide whether to continue with its “highly disruptive and distracting” proxy fight or help Arconic in finding a new CEO for a smooth transition.
Kleinfeld led the successful transformation of former Alcoa Inc. that concluded in the launch of two independent, publicly traded companies – Arconic Inc. and Alcoa Corporation (AA - Free Report) – in Nov 2016.
Arconic’s shares closed around 3% higher at $26.69 yesterday. The company’s shares have gained around 44% year to date, outperforming the Zacks categorized Mining-Non Ferrous industry's gain of roughly 9.5% over the same period.
Arconic is a Zacks Rank #2 (Buy) stock.
Other Stocks to Consider
Other well-placed companies in the basic materials space include Amerigo Resources Ltd. (ARREF - Free Report) and Ternium S.A. (TX - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Amerigo Resources has an expected earnings growth rate of 325% for the current year.
Ternium has an expected long-term growth rate of 18.4%.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>