Elliot: A Sniper on the Board of Arconic

  • Reference: C-787-E

  • Year: 2016

  • Number of pages: 37

  • Geographic Setting: Estados Unidos

  • Publication Date: Dec 7, 2017

  • Source: IESE (España)

  • Type of Document: Case

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Description

The case describes Elliot Management's actions to change the governance structure of Arconic. Elliot Management is one of the largest activist investor funds in the US. Among its businesses, it identifies undervalued companies and unlocks this value, taking a significant position in the equity of the company and through this position forcing changes, often starting at the governance level. Arconic is the Mid and Upstream company that came out of Alcoa when Alcoa was split into two companies in 2016.

Learning Objective

The case presents the role of activist investors and how they try to influence companies to have them unlock value for the shareholder. It is also a good vehicle to talk about governance as well as proxy fights and the role of the board of directors. The case can be used in programs on corporate governance at the master and executive level.

Keywords

Activist Investor Control Corporate governance Proxy Fight