- Ruben Sprich/Reuters
U.S. specialty metals maker Arconic Inc’s chief executive, Klaus Kleinfeld, has resigned, following attempts by activist hedge fund Elliott Management to overthrow the company’s directors and top executives.
Arconic said Kleinfeld stepped down after the board learned he had sent a letter to a senior officer of Elliott Management without consulting the board.
Arconic said the move “showed poor judgment” on Kleinfeld’s part.
Arconic’s stock price has jumped on the news, rising about $1 in value from $26 per share at the start of Monday morning, according to Markets Insider data.
The company also said that it had not made the decision in reponse to Eliott’s criticisms. Elliott, a New York activist hedge fund led by Paul Singer, has been waging an activist campaign against the company for months. A spokesman for Elliott didn’t immediately comment.
Elliott had been campaigning for the ouster of Kleinfeld and had engaged Larry Lawson, formerly CEO of aircraft parts supplier Spirit AeroSystems Holdings Inc, as a consultant.
Elliott has said that Lawson should be a leading candidate for the top job at Arconic.
Kleinfeld oversaw the split-up of Alcoa Inc into Arconic and Alcoa Corp last year.
Board member David Hess has been appointed as interim CEO, Arconic said.