Activist Elliott Takes Stake in Alcoa
November 23 2015 - 11:30AM
Dow Jones News
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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