Arconic considering USD 11bn bid received Friday from Apollo Global Management - report
23 OCT 2018
Arconic Inc [ARNC.N] is considering an USD 11bn bid received Friday from Apollo Global Management, according to a newswire report.
Reuters cited people familiar with the matter in reporting the size of the offer this morning. One source told Reuters, Apollo's offer values the aluminum products maker at USD 23 to USD 24 per share.
The offer adds pressure on Arconic to come to a decision regarding whether it will stay independent in the wake of President Trump's aluminum tariffs imposition, which drove the company's costs upward in 2018, the article reported.
Shares in Arconic closed Monday at USD 21.45, the article noted, adding that the company had total debt of USD 6.3bn, with USD1.46bn cash at 30 June 2018.
Whether a bidding group comprising Caryle Group LP [CG.O], Blackstone Group LP [BX.N], Canada Pension Plan Investment Board and Onex Group [ONEX.TO] will submit an offer is unclear, the sources told Reuters.
No deadline has been set for bids for Arconic, the article reported, and it's unclear whether additional bids will come forth. Arconic wants to decide whether to proceed with selling itself by its investor day in November, sources told Reuters.
Sources have said that Elliott Management Corp, which has representation on Arconic's board, has been pushing the exploration of a sale, the article reported.