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R/€ = 14.15 Change: -0.13
R/$ = 13.11 Change: -0.18
Au 1251.71 $/oz Change: -2.75
Pt 953.00 $/oz Change: -4.00
 
 
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Elliott demands review of Arconic's voting deal with Oak Hill

21st March 2017 BY: Reuters

NEW YORK – Hedge fund Elliott Management, which is in the throes of a proxy battle with Arconic Inc, demanded on Monday an independent review of the company's voting agreement with private equity firm Oak Hill Capital Partners.

Last week, Arconic disclosed that in August 2016 the company had reached a two-year deal with its sixth biggest shareholder, Oak Hill, which had agreed to vote in favour of directors nominated by Arconic's board.

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The deal was part of a resolution of a "working capital adjustment" in connection with Arconic's acquisition of aircraft parts maker Firth Rixson from Oak Hill.

Arconic said earlier on Monday that it had waived the limited voting commitment with Oak Hill.

Elliott, which owns a 13.2% stake in Arconic, has been pressuring the company for CEO Klaus Kleinfeld's ouster.

Elliott said on Monday that Arconic's board must take immediate action to dismiss anyone who devised, authorised and participated in negotiating the "secret vote-buying agreement", thereby "converting company assets for personal benefit". 

EDITED BY: Creamer Media Reporter
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