- Write by:
-
Thursday, January 3, 2019 - 11:12:59 AM
-
1087 Visit
-
Print
Mining News Pro - Apollo Global Management LLC is in talks to buy Arconic Inc. for about $22 a share in a deal that could be reached by mid-January, according to people familiar with the matter.
According to Mining News Pro - The private equity firm and aerospace manufacturer are negotiating a transaction that would protect Apollo from Arconic’s possible liability tied to a deadly apartment fire in London in 2017, said the people, who asked to not be identified because the matter isn’t public. The final price is still being negotiated and talks could fall apart, they said.
Arconic discontinued sales of the aluminum panels used on the Grenfell Tower after the blaze amid reports they were a fire hazard. The company would spin off its cladding business -- the entity that made the panels -- as part of a deal with Apollo, the people said.
Elliott Management Corp. would purchase a majority interest in the cladding business, which would be recapitalized and insured as part of the spinoff, the people said. Separately, the New York-based hedge fund would roll over its 10.7 percent stake in Arconic as part of the take-private transaction with Apollo, they said.
Obstacles to reaching an agreement could include securing financing and further stock market volatility, which has dampened prices, one of the people said.
Representatives for Elliott, Arconic and Apollo declined to comment.
Apollo emerged as the leading bidder for Arconic after trumping an offer from a rival group of private equity investors, people familiar with the matter said in December. The privatization would cap a brief but tumultuous period of independence for Kingston, New York-based Arconic, which makes aircraft and automotive parts.
Since splitting from Alcoa Corp. in 2016, Arconic fought a proxy battle with Elliott and replaced its chief executive officer.
Arconic rose about 10% - its largest intraday gain since July -- to $18.50 at 3:49 p.m. in New York trading, giving the company a market value of about $9-billion. Its shares had fallen about 37% in the past year before Wednesday’s gains.
Arconic, under Chief Executive Officer Chip Blankenship, put its building and construction systems unit up for sale in July. It also agreed to move its headquarters out of New York City to cut costs.
Short Link:
https://www.miningnews.ir/En/News/322753
Mining News Pro - Each week, Mining News Agency will introduce a famous book in the field of mining and mining ...
Mining News Pro - The latest list of the top places to invest in mining is dominated by developed countries with long ...
Mining News Pro - Toronto-based Generation Mining announced on Wednesday it has arranged a bought deal private placement ...
Mining News Pro - Northern Minerals is raising $15 million in funding to develop its Browns Range heavy rare earth pilot ...
Mining News Pro - All is set for the Polaris Seismic exploration session slated for the 14th of February which according ...
Mining News Pro - French multinational mining company Eramet’s lithium project in the Andean Cordillera of Salta, ...
Mining News Pro - Danakali Ltd notes the United Nation’s decision yesterday (Wednesday, 14 November 2018) to lift the ...
Mining News Pro - Abuja — Minister of State for Mines and Steel Development, Abubakar Bawa Bwari, has said that ...
Mining News Pro - Abuja — Minister of State for Mines and Steel Development, Abubakar Bawa Bwari, has said that ...
No comments have been posted yet ...