AA - Arconic: Deep Value Clouded By Hazy Execution
The news that Arconic (ARNC) would stop the sales process of the company after rejecting a $22.20/share bid from Apollo Global Management in January sent shares tumbling lower. A large driver of the rebound has been the betting on private equity interest. While the reasons that private equity investors were interested in the first place (leverage to the aerospace cycle, working capital improvement) still persist, the path to easy price realization has now faltered.
While much of the sell-side was quick to defend management decision to instead separate into two businesses, particularly after