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Published: Tue, April 18, 2017
Economy | By Melissa Porter

Arconic CEO quits over letter sent in 'poor judgment' to Elliot

Arconic CEO quits over letter sent in 'poor judgment' to Elliot

"The Board continues to believe that under Mr. Kleinfeld's leadership, the Company successfully executed a transformative vision and improved business performance amid a complex market environment, and the Board reaffirms the strategy developed under Mr. Kleinfeld's leadership and shared with our investors, customers and employees".

Arconic says CEO and Chairman Klaus Kleinfeld has agreed to step down from those roles after the company's board of directors discovered he sent a letter to Arconic's largest shareholder without telling them.

Elliot Management holds a 13.2% stake in the lightweight metals manufacturer.

April 17 US specialty metals maker Arconic Inc's chief executive, Klaus Kleinfeld, resigned on Monday amid attempts by activist hedge fund Elliott Management to replace the company's directors and top executives.

Arconic's stock jumped as much as 9.8 percent on Monday, before easing to trade up 2.5 percent at $26.56 in late afternoon trading.

Elliott has said that Lawson should be a leading candidate for the top job at Arconic. She was lead director on the Arconic board since it separated from Alcoa Inc.

Kleinfeld had served as Alcoa Inc's CEO for eight years and oversaw the company's split-up into Arconic and Alcoa Corp AA.N last year.

Up to Thursday's close, Arconic had risen 36.9 percent since the spilt on November 1.

Current board member David Hess has been appointed as the interim CEO, and Patricia Russo has been appointed the board's interim chair.

Elliott reported in March that Spirit AeroSystems had said Lawson breached a non-compete clause in his retirement contract by consulting for Elliott, a view the hedge fund has said it disagreed with.

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