(Reuters) - Investment manager Orbis Investment Management Ltd on Friday disclosed a stake of about 2.8 percent in U.S. specialty metals maker Arconic Inc (ARNC.N), and said it intends to support hedge fund Elliott Management Corp in its proxy battle against the company.
Bermuda-based investment manager Orbis said it intends to vote in favor of Elliott’ slate of independent nominees to join Arconic’s board.
Arconic has been under pressure from activist investor Elliott, which last week stepped up pressure for Chief Executive Klaus Kleinfeld’s ouster after raising its stake in the company to about 13 percent.
In January, Elliott had nominated five directors to Arconic’s board.
Orbis said on Friday it does not believe that Arconic can reflect its true value under the leadership of Kleinfeld.
Reporting by Ankit Ajmera in Bengaluru