Aluminum products maker Arconic in talks to sell itself: sources – by Harry Brumpton and Greg Roumeliotis (Reuters U.S. – August 24, 2018)

(Reuters) – Aluminum products maker Arconic Inc is discussing acquisition offers for the entire company, even though it announced a sale process last month only for its building and construction systems unit, people familiar with the matter said.

The move comes after Arconic, which was spun out of Alcoa Corp in 2016, said in February it would carry out a “strategy and portfolio review,” to be completed by the end of 2018, but has provided little detail about what this entails.

Arconic is speaking with private equity firms that have shown interest in acquiring the company, including a consortium of Blackstone Group LP and Carlyle Group LP, another consortium of KKR & Co and Onex Corp, as well as Apollo Global Management LLC, the sources said on Friday.

Arconic shares jumped on the news to end trading on Friday up 4.7 percent at $22.23, giving the company a market capitalization of $10.7 billion.

Activist hedge fund Elliott Management Corp, which won board representation at Arconic last year following a proxy contest, has been instrumental in pushing the company to explore a sale, the sources said. However, some of the private equity firms have expressed doubts over whether the company’s high price expectations for a sale can be met, some of the sources added.

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