April 20 Activist hedge fund Elliott Management
released the private letter written by Arconic Inc's
former chief executive, Klaus Kleinfeld, which consequently led
to his resignation, and their response to the letter and
Arconic's statement on April 17.
Elliott said late on Wednesday that Arconic had created a
"public frenzy" for further information and that it had no
choice but to make the letter and their response public.
Arconic on Monday said that Kleinfeld resigned on mutual
agreement after the specialty metals maker found he sent a
letter in "poor judgment" to Elliott Management, with whom it is
embroiled in a proxy war and which used the chance to again
criticize the company's board.
Elliott, run by activist investor Paul Singer, said the
letter "read as a threat to intimidate or extort a senior
officer of Elliott Management based on completely false
insinuations" and that it immediately informed Arconic's board
of the letter.
Kleinfeld wrote to Singer on April 11 mentioning Singer's
family trip to Germany in 2006, when he attended the World Cup,
and enclosed the official ball of the FIFA World Championships
2006 as a "souvenir". bit.ly/2oRrs4Z
After learning of this letter, Elliott's general counsel,
Richard Zabel, wrote to Arconic's board saying that "this is
highly inappropriate behavior by anyone and certainly by the CEO
of a regulated, publicly traded company, in the midst of a proxy
Arconic on Monday cited this letter as the reason for
Kleinfeld stepping down from its board.
"This decision was not made in response to the proxy fight
or Elliott Management's criticisms of the company's strategy,
leadership or performance..." the company said in its statement
on April 17 following Kleinfeld's departure.
Zabel made it clear to Arconic in the letter sent on April
17 that the changes in leadership did not fully address all of
the concerns about the CEO's conduct for them or for the
Elliott said in February it has raised its stake in Arconic
to about 13 percent.
Kleinfeld had served as Alcoa Corp's CEO for eight
years and oversaw the company's split-up into Arconic and Alcoa
(Reporting by Shalini Nagarajan in Bengaluru; Editing by