Categories Retail, U.S. Markets News

Arconic says it’s no longer available for sale; stock nosedives

Arconic Inc (ARNC) announced that the Board has determined to no longer pursue a potential sale of the company as part of its strategy and portfolio review. However, the company said that it will continue with the previously announced sale process of its Building and Construction Systems unit. Shares of Arconic tanked more than 25% in the pre-market trading on Tuesday.

For the past few months, it was reported that the public equity firm Apollo Global Management (APO) is eyeing to buy Arconic. Last Thursday, New York Post reported that Apollo is close to taking over Arconic in a deal valued at $10.6 billion.

Arconic’s Chairman John Plant stated that the company has been conducting a strategic review over the past year and as part of that process considered a sale of the company. He added that the New York-based company has not received a proposal for a full-company transaction that it believes would be in the best interests of Arconic’s shareholders and other stakeholders.

Related: Arconic Inc Q3 2018 earnings conference call transcript

In January 2018, Arconic initiated a review of its strategy and portfolio. As part of that review, the company initiated the sale process of Building and Construction Systems (BCS) business in July 2018.

In October 2018, Arconic sold its Texarkana, Texas rolling mill to Ta Chen International for about $300 million, plus additional contingent consideration of up to $50 million.

Alcoa Q4 earnings beat estimates amidst tough macro factors

Arconic stock, which plunged to a new 52-week low ($15.63) on December 26, 2018, opened at $16.70 on Tuesday morning. The stock had dropped 19% in the last three months and 45% in the past 52-weeks period.


Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips

Most Popular

IPO Alert: Here’s what to look for when CaliberCos goes public

The massive slowdown in the IPO market continued in the second half as the challenges posed by high inflation and interest rate hikes weighed on investor confidence. Meanwhile, there is

CarMax (KMX) Stock: Does the current dip offer a buying opportunity?

The automotive sector is one of the worst affected by the combination of high inflation and rising interest rates. Consumers have become more cautious and are prioritizing their purchases with

Ultimax Digital gears up for $10mln IPO. Here’s all you need to know

The IPO market has witnessed muted activity this year, and things don’t seem to have improved in the second half. The upcoming public listing of video game technology firm Ultimax

Add Comment
Viewing Highlight