APO - Activist investor Sachem Head pushing Arconic to sell itself- report

2023-03-31 12:42:56 ET

Activist invest Sachem Head has taken a stake in Arconic ( NYSE: ARNC ) and is pushing the aluminum maker to continue with a process to sell itself.

Sachem Head, run by Scott Ferguson, has amassed its stake in Arconic ( ARNC ) in recent weeks, according to a Reuters report, which cited people familiar. The size of the position wasn't known.

The news after Bloomberg reported on Thursday that private equity firm Apollo Global ( APO ) i s evaluating making an offer of around $27 or $28 a share by early April for Arconic ( ARNC ), which Reuters also confirmed. Apollo has lined up financing with banks for a bid, though it's plans aren't finalized and it could still decide not to go forward with an offer.

The latest update comes after Dealreporter on Wednesday reported that private equity firm s Carlyle Group ( CG ) and Lone Star Funds have joined Apollo Global ( APO ) in the sales process for the company.

The Sachem Head stake could raise pressure on Arconic ( ARNC ) to come to an agreement with a buyer, Reuters said.

The WSJ last month reported that Apollo ( APO ) was is in discussions to purchase the aerospace-parts make , driving the shares up almost 20% on Feb. 28.

The potential Arconic ( ARNC ) deal comes after media reports in 2018 that Apollo (APO ) was in talks to buy Arconic for more than $11 billion. The deal never came to fruition and Arconic in 2020 s plit itself into two companies , Arconic and Howmet Aerospace ( HWM ).

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