Aluminium products maker Arconic Inc`s board of directors is mulling an $11 billion acquisition offer it received last Friday from buyout firm Apollo Global Management LLC, according to people familiar with the matter.
The offer is at a small premium to where Arconic shares are trading, adding pressure on the U.S. company to decide if it will remain independent after President Donald Trump`s imposition of aluminium tariffs drove up its costs this year and weighed on business prospects.
Apollo`s offer values Arconic at between $23 and $24 per share, one of the sources said. Arconic shares ended trading on Monday at $21.45. Arconic had $6.3 billion in total debt and cash of $1.46 billion as of the end of June.
Another bidding group, comprising buyout firms Blackstone Group LP, Carlyle Group LP, Onex Corp and Canada Pension Plan Investment Board, has yet to submit an offer for Arconic, and it is not clear whether it will submit a bid to rival Apollo`s in the coming days, the sources said.
Arconic has not yet set any firm bid deadline and no deal is imminent, though the company is hoping to reach a decision on whether it will sell itself by the time it holds its investor day next month, according to the sources. It is not clear whether more bids from other parties will emerge.
The sources asked not to be identified because the deliberations are confidential. Arconic, Apollo, Blackstone, Carlyle and Canada Pension Plan Investment Board declined to comment, while Onex did not immediately respond to a request for comment.
Arconic`s products, which are made of aluminium, titanium or nickel, are used around the world by aerospace, automotive, commercial transportation and packaging manufacturers.
Arconic, which was spun out of Alcoa Corp in 2016, said in February it would carry out a "strategy and portfolio review."
In August, Arconic announced it was considering selling its building and construction systems unit, which makes facades, windows and framing products. The announcement came one year after a major fire broke out at London`s Grenfell Tower apartment complex, where the company`s Reynobond PE panels were used in the cladding. More than 70 people were killed in the blaze.
Activist hedge fund Elliott Management Corp, which won board representation at Arconic last year following a proxy contest, has been instrumental in pushing the company to explore a sale, sources have said.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
![https://www.zeebiz.com/personal-finance/photo-gallery-sip-swp-monthly-pension-income-retirement-corpus-planning-calculator-inr-rs-20000-monthly-investment-for-15-years-inr-99000-monthly-return-for-42-years-313283](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/09/06/316973-rupee-pixabay-take-1.jpg?itok=02-hJh59)
SIP+SWP: Rs 20,000 monthly SIP for 16 years to get Rs 99,000 monthly income for 42 years; how is it possible?
![https://www.zeebiz.com/market-news/news-bajaj-finserv-rvnl-borosil-renewables-carysil-railtel-corporation-stocks-to-buy-hdfc-securities-recommendation-picks-target-stop-loss-bse-nse-313386](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/09/06/317091-26.jpg?itok=gE1cWt7z)
RVNL, Bajaj Finserv and 5 more: Brokerage recommends buying these 7 stocks for up to 3 months | Check target, stop loss
![https://www.zeebiz.com/personal-finance/photo-gallery-nps-vs-ups-vs-ops-monthly-pension-income-retirement-corpus-calculator-what-will-be-your-pension-on-inr-rs-10000-contribution-for-35-years-expert-calculations-313361](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/09/06/317060-rupee-pixabay-take-2.jpg?itok=cOVdof_v)
NPS vs UPS vs OPS: What will be your monthly pension if you contribute Rs 10,000 monthly for 35 years? Get expert calculations
![https://www.zeebiz.com/personal-finance/photo-gallery-top-7-etf-sip-mutual-funds-in-5-years-calculator-how-inr-rs-21000-monthly-investment-has-grown-in-nifty-sp-bse-next-50-cpse-uti-icici-pru-nippon-india-motilal-oswal-bharat-22-nift-mid-infra-313306](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/09/06/316994-indian-currency-pixabay-take-1.jpg?itok=JURVEkst)
Top 7 ETF Mutual Funds With Highest SIP Returns in 5 Years: How Rs 21,000 monthly SIP has grown in each ETF over the years
![https://www.zeebiz.com/personal-finance/photo-gallery-sbi-senior-citizen-fd-fixed-deposit-latest-interest-rate-2024-calculator-what-be-maturity-amount-with-return-on-investments-of-inr-900000-lakh-in-1-3-5-year-guaranteed-return-scheme-retirement-planning-313221](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/09/06/316909-note-coin-pixabay-take-1.jpg?itok=3RPKcBYE)
SBI Senior Citizen FD Rates 2024: What you can get if you invest Rs 3 lakh, Rs 5 lakh, Rs 7 lakh, and Rs 9 lakh in 1-, 3-, and 5-year FDs
06:00 AM IST