A new bit of Aronic news has ARNC stock falling hard on Tuesday.
The news from Aronic (NYSE:ARNC) is that the company is no longer moving forward with plans to sell itself. It says that this decision was made as part of a review of its portfolio and strategy.
Here’s the company’s official statement on the matter from Chairman John Plant.
“Together with management, we have been conducting a rigorous and comprehensive strategy and portfolio review over the past year and as part of that process considered a sale of the company, among other matters. However, we did not receive a proposal for a full-company transaction that we believe would be in the best interests of Arconic’s shareholders and other stakeholders.
We will continue with the previously announced sale process for our Building and Construction Systems business. More broadly, we remain strongly focused on creating value for Arconic shareholders, through continued operational improvements and through other potential initiatives which we have identified in our strategic review.”
The Aronic news brings an end to talk about a possible deal for the company that could have been worth more than $10 million. The reports claimed that Apollo Global Management was behind this offer. The news may also result in a renewed battle between company executives and activist investor Elliott Management Corp.
ARNC stock was down 17% as of Tuesday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.