One of these targeted firms is a buy

Article Excerpt

ARCONIC INC. $18 (New York symbol ARNC; Manufacturing & Industry sector; Shares outstanding: 483.2 million; Market cap: $8.7 billion; Dividend yield: 1.3%; Takeover Target Rating: Medium; www.arconic.com) is a leading maker of engineered-aluminum products for cars and jet engines. On November 1, 2016, Arconic spun off Alcoa Corp. (New York symbol AA), its bulk aluminum business. Investors received one Alcoa share for every three ARNC shares they held. Activist investment firm Elliott Management owns 10.7% of Arconic and has pressured it to cut costs and boost profit margins. Elliott now has three directors on the company’s 13-member board of directors. It’s also likely that Elliott is pushing Arconic to put itself up for sale. Possible buyers include New York-based private equity firm Apollo Global Management (New York symbol APO), which has reportedly offered to buy Arconic for between $23 and $24 a share. Another bidding group, comprising buyout firms Blackstone Group LP, Carlyle Group LP, Onex Corp. and Canada Pension Plan Investment Board, may also offer to…

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