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.
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.