May 15 (Reuters) - Proxy advisory firm Institutional Shareholder Services Inc recommended on Monday that shareholders of specialty metals company Arconic Inc vote for two of activist investor Elliott’s four board director nominees.
Negotiations between Elliott and Arconic to avoid a proxy contest broke down shortly after the resignation last month of Arconic Chief Executive Officer Klaus Kleinfeld, following a letter he sent to Elliott founder Paul Singer that was deemed as inappropriate.
“As the dissident has already achieved its explicitly stated primary goal (of removing Klaus from Arconic), the need to support all four dissident nominees seems less urgent,” ISS said in its recommendation.
ISS recommended that the two Elliott nominees that Arconic shareholders should support are Chris Ayers and Elmer Doty.
The shareholder vote on Arconic’s board directors is scheduled for May 25. (Reporting by Michael Flaherty in New York; Editing by Cynthia Osterman)