Activist investor Elliott Management Corp. has taken a 6.4% stake in aluminum producer Alcoa Inc., saying it believes shares of the company are "dramatically undervalued."

Shares of Alcoa, which have declined more than 40% so far this year, rose 5% to $9.12 in early trading on Monday.

Elliott also threw its weight behind Alcoa's planned spinoff transaction announced at the end of September, saying it will create value substantially above the current share price. But Elliott said it wants to talk with the Alcoa board and management regarding the split and other available opportunities.

Alcoa said in September that it would split in two, a move that would isolate the company's more profitable parts-making units from its raw aluminum operations.

Write to Anne Steele at Anne.Steele@wsj.com

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(END) Dow Jones Newswires

November 23, 2015 11:15 ET (16:15 GMT)

Copyright (c) 2015 Dow Jones & Company, Inc.
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