Elliott Management Nominates Five Independent Director Candidates to the Board of Arconic

2/1/17

NEW YORK--(BUSINESS WIRE)--Elliott Management Corporation which manages funds that collectively beneficially own 10.5% (12.1% economic ownership) of the common stock and equivalents of Arconic, Inc. (NYSE:ARNC), today announced in a presentation to Arconic shareholders that it has nominated five independent, highly qualified nominees to the Company’s Board.

In addition, Elliott announced the engagement of former Spirit AeroSystems, Inc. (NYSE: SPR) CEO Larry Lawson as a consultant. During Mr. Lawson’s tenure at Spirit, the company outperformed the S&P 500 by an average of 34% per year. Furthermore, as CEO, Mr. Lawson gained a reputation as a “tough change agent with unrelenting demands on performance improvement” (Barclays, December 18, 2013).

Elliott’s presentation showcased Mr. Lawson’s extensive executive leadership experience with multinational aerospace and manufacturing companies, stating that Mr. Lawson “has the ideal set of skills needed to turnaround Arconic’s woefully and continually underperforming business.”

The presentation explains that a change of leadership is required to improve performance at Arconic today, and they outline a path, based on the application of an appropriate industry multiple, to at least $33–$54 per share (representing upside of at least 45%-138%)through the implementation of certain operational, capital-allocation and strategic initiatives.

The investor presentation and other materials can be viewed at NewArconic.com.

The bios of the Shareholder Nominees follow:

  • Chris L. Ayers (President and CEO, WireCo WorldGroup, Inc.): Brings considerable industry expertise having been a former Company executive and former President of the PCC Forgings Division of Precision Castparts, as well as a current director of Universal Stainless & Alloy Products. Mr. Ayers' deep experience in the specialty materials industry, including his previous executive service with the Company prior to its separation into two publicly traded companies, makes him well-qualified to serve on the Board.
  • Elmer L. Doty (Former President and CEO, Accudyne Industries): Brings more than 40 years of leadership experience in heavy industry, with General Electric, FMC Corporation, United Defense, BAE Systems, Vought, and Accudyne. Mr. Doty’s years of management experience as a senior executive and deep knowledge of the aerospace and defense industries will make him a valuable addition to the Board.
  • Charles M. Hall (Former President and CEO, AM General LLC): Brings more than 40 years of leadership experience in the defense sector after a long career at General Dynamics Corporation, a global aerospace and defense company, where he held numerous executive roles. Mr. Hall’s significant leadership experience in the defense sector and his knowledge of complex organizations and external agencies will bring fresh perspectives to Arconic’s Board.
  • Bernd F. Kessler (Former CEO, SRTechnics): Brings valuable insights from a long career as an international business executive, including as a director of Polaris Industries, former President and CEO of MTU Maintenance and former executive at Honeywell International. Mr. Kessler’s strong background in engineering, operational excellence and organizational development will serve the Board well as it seeks to improve performance.
  • Patrice E. Merrin (Former President and CEO, Luscar Ltd.): Brings valuable experience as an international business executive and corporate director who currently serves as a director for Stillwater Mining, Glencore, and Novadaq Technologies. Ms. Merrin’s significant experience serving as a director of public companies and her industry insights will make her a valuable addition to the Board.


ABOUT ELLIOTT

Elliott Management Corporation manages two multi-strategy hedge funds which combined have approximately $31 billion of assets under management. Its flagship fund, Elliott Associates, L.P., was founded in 1977, making it one of the oldest hedge funds under continuous management. The Elliott funds’ investors include pension plans, sovereign wealth funds, endowments, foundations, funds-of-funds, high net worth individuals and families, and employees of the firm.