February 23, 2017 / 4:38 PM / 5 months ago

CORRECTED-Elliott raises stake in Arconic, pushes harder for CEO ouster (Feb 23)

2 Min Read

(Corrects paragraph 4 in Feb 23 story to clarify that Alcoa Corp is the spun off company, not Arconic Inc)

Feb 23 (Reuters) - Hedge fund Elliott Management Corp said on Thursday it had raised its stake in specialty metals maker Arconic Inc to about 13 percent and stepped up pressure for the ouster of Chief Executive Klaus Kleinfeld.

Elliott also made a big push for hiring Larry Lawson, former CEO of aircraft parts maker Spirit AeroSystems Holdings Inc , for the top job at the company, saying Arconic shareholders deserved a "proven operator" as CEO.

The activist investor, which is Arconic's biggest shareholder, had a stake of about 11 percent in the company as of Feb 22, according to Thomson Reuters data.

Kleinfeld had engineered aluminum producer Alcoa Corp's spin off from parent company Alcoa Inc, which has been renamed as Arconic, last year.

Arconic's shares were down 3 percent at 29.60 in late morning trading on the New York Stock Exchange. (Reporting by Ankit Ajmera in Bengaluru; Editing by Anil D'Silva)

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