Komfie Manalo, Opalesque Asia:
Activist hedge fund Elliott Management Corporation, which owns a 13.2% economic interest in Arconic Inc., is seeking explanation from the board as it alleges that recently disclosed transaction in which the company's management appears to have traded valuable corporate assets in exchange for votes at the company's 2017 and 2018 annual meetings.
At the same time, Elliott International, L.P., sent a letter to Kate Ramundo, Arsonic's chief legal officer and corporate secretary demanding for inspection of the company's books and records concerning the Firth Rixson acquisition and the settlement of the "working capital adjustment".
Another letter, dated 16 March 2017, Elliott cited an alleged questionable transaction which reportedly took place in August of 2016, that was disclosed for the first time in the company's definitive proxy statement, filed with the Securities and Exchange Commission on March 13, 2017.
Dave Miller, Eliott's senior portfolio manager, said in the letter, "In the company's March 13, 2017 Definitive Proxy Statement, reference is made to a previously undisclosed transaction from August 2016, in which the company locked up the vote of approximately 8.7 million shares of Arconic common stock in exchange for the resolution of potentia......................
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