Spinoff Spotlight

Article Excerpt

ARCONIC INC. $18 (New York symbol ARNC; Manufacturing & Industry sector; Shares outstanding: 483.2 million; Market cap: $8.7 billion; Dividend yield: 0.4%; Takeover Target Rating: Medium; www.arconic.com) spun off Alcoa Corp. (New York symbol AA), its bulk aluminum business in November 2016. Investors received one Alcoa share for every three ARNC shares they held. Arconic recently rejected a $21-a-share takeover offer from private equity firm Apollo Global Management (New York symbol APO). The two sides could not find a way to protect Apollo from any class-action lawsuits stemming from the June 2017 Grenfell Tower fire in London, U.K. Arconic manufactured the aluminum panels involved in the fire. The company now plans to reorganize into two divisions: Engineered Products & Forgings and Global Rolled Products. It will then sell any of its smaller operations that don’t fit into either of the two new units. After that Arconic will spin off one of the two divisions. In addition, it aims to cut $200 million in annual costs by…

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