Arconic Inc. versus Elliott Management Corp.: A Battle for Control
(6 pages of text)
Case (Pub Mat)
Arconic Inc. was a lightweight-material engineering firm that supplied the aerospace, automotive, and commercial transportation industries. Elliott Management Corporation was an activist investment firm that held a minority investment in Arconic Inc.. The two companies were locked in a public disagreement on how to generate acceptable financial returns for investors. At a shareholders' meeting on May 25, 2017, all shareholders would be able to vote on the four nominees that would become members of Arconic's new board. In the weeks leading up to the annual shareholders' meeting, the tension between the Arconic board and Elliott Management continued to build.
This case is suitable for postgraduate and executive courses on corporate governance. Students are expected to have covered the role of boards of directors and topics on internal control and external governance and reporting. Working through the case and analysis questions will help students to
- understand the role of activist investors and how they can bring about significant changes in the board composition and strategies of the firms they invest in;
- appreciate the challenges and different viewpoints on what is meant by acceptable financial performance in large, publicly listed companies; and
- understand the role of corporate communications when activist investors and boards of large corporations are embroiled in a public disagreement concerning the governance and strategy of the firm.
United States, Large, 2017
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