Tuesday, 7 May 2024

Arconic shares jump after report of buyout by Apollo Global

(Reuters) – Shares of Arconic Inc (ARNC.N) closed up 9.7 percent after Bloomberg reported that Apollo Global Management LLC (APO.N) is in talks to buy the U.S. aluminum products maker for about $22 a share, citing people familiar with the matter.

The deal could be reached by mid-January, and the two companies are negotiating one that would protect Apollo from Arconic’s possible liability tied to a deadly apartment fire in London in 2017, according to the report.

Elliott Management Corp, the activist hedge fund that sits on Arconic board, is working to address potential liabilities weighing on the sale process for the U.S. aluminum products maker, Reuters had reported in November.

Elliott’s move comes after Arconic had rejected an acquisition offer of more than $11 billion from Apollo Global Management as inadequate.

Apollo and Arconic did not immediately respond to a Reuters request for comment.

(This story removes extraneous words in lede)

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