Brooke Sutherland, Columnist

Arconic's 'We Alone Can Fix It' Message Falls Flat

Elliott's investor "preferences" are shared by other holders as well.

March 6, 2017 at 2:57 PM UTC

Brooke Sutherland is Bloomberg News' Boston bureau chief and writes the Industrial Strength Newsletter. She was previously a Bloomberg Opinion columnist covering deals and industrial companies and an M&A reporter for Bloomberg News.

Provide news feedback or report an error

Site feedback:

Take our Survey

This article is for subscribers only.

Arconic Inc. is having a "we alone can fix it" moment.

The board of the $12 billion aluminum-parts maker, under pressure from activist investor Elliott Management Corp. to fire CEO Klaus Kleinfeld, published a letter last Thursday arguing among other things that it's "uniquely positioned" to make the call on his employment and the company's strategic direction. It dismissed Elliott's complaints about lagging margins, misguided capital allocation, underwhelming shareholder returns and out-of-date corporate governance policies as a ploy to enact the "preferences of a hedge fund with no experience operating Arconic's business or navigating the challenges that Arconic has faced." Um… what?