Fitch: Settlement deal between Arconic, Elliott 'becoming more unlikely'
Elliott Management's proxy battle with Arconic could evolve into one of the most notable examples of shareholder activism this year, according to Fitch Ratings. U.S. corporations have become increasingly inclined to enter into amicable settlements with dissident investors in lieu of drawn-out proxy battles due to the time and costs involved. However, as Arconic's May 16, 2017 annual meeting draws near, the possibility of a settlement agreement between Elliott and Arconic, following a spate of widely followed events, is becoming more unlikely. Fitch says, "Shareholders have a great deal to ponder on when rendering votes at the Arconic meeting, taking into account current events such as Elliott's push to replace Arconic's now ousted CEO, after his decision to go rogue with an insinuating letter to Elliott, numerous discrediting presentations by both parties, vote-buying allegations and Arconic's notice that its pension plan would require a sizeable contribution in the event of a change of control. Both parties are seemingly exhausting every option to garner shareholder support but there appears to be an overwhelming amount of conflict hindering any settlement. Elliott is intent on gaining greater board representation in order to implement strategies to further maximize value for shareholders but the incumbent board is standing its ground."