The law firm of Kirby McInerney LLP reminds investors of the March 31, 2025, deadline to seek the role of lead plaintiff in a federal securities class action filed on behalf of investors who acquired Arconic Corporation (“Arconic” or the “Company”) (NYSE:ARNC) securities during the period from April 19, 2022, through May 3, 2023 (“the Class Period”).
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On April 19, 2022, Apollo Global Management, Inc. (“Apollo”) approached Arconic with an offer to acquire all the Company’s outstanding stock at a price between $34 and $36 per share. This was a significant cash premium to the then-current market price for Arconic common stock of $27.23 per share. Arconic rebuffed Apollo’s offer because the Board concluded it undervalued Arconic. Apollo continued to demonstrate interest in the acquisition of Arconic. Apollo partnered with Irenic Capital Management LP (“Irenic”) concerning the potential acquisition of Arconic starting in May 2022. From May 5, 2022, through June 23, 2022, Apollo, Irenic, and Arconic had discussions concerning a potential acquisition of Arconic. Between June 23, 2022, and November 28, 2022, Arconic, Apollo and Irenic kept in contact, but these contacts did not result in the submission of any new proposals for an acquisition of Arconic.
Even though the Defendants were in possession of this material nonpublic information concerning Apollo’s and Irenic’s interest in acquiring Arconic at a price materially above the then-current prices of Arconic, during the period from June 1, 2022, through August 31, 2022, Arconic repurchased 4,357,690 shares of its common stock on public markets, significantly below Apollo’s offer of $34 to $36 per share.
By August 31, 2022, these purchases exhausted the maximum dollar amount that Arconic could repurchase under its then-existing share repurchase program. On November 16, 2022, Arconic announced that its Board of Directors had approved a new two-year share repurchase program authorizing the repurchase of up to $200 million worth of additional shares of Arconic common stock on the public markets.
On November 28, 2022, Apollo informed Arconic that it was considering submitting a new proposal for an acquisition of Arconic at a meaningful premium to Arconic’s stock price, which closed at $21.65 per share on November 28, 2022.
Then, on December 12, 2022, Apollo submitted a revised proposal to acquire Arconic in an all-cash transaction at a price of $30.00 per share, a meaningful premium to the price of Arconic’s common stock, which closed on December 12, 2022, at $22.57 per share. However, Arconic continued to engage in share repurchases at prices materially below Apollo’s $30 per share offer. From November 2022 to January 2023, Arconic repurchased an additional 2,107,450 shares of Arconic common stock on the public markets for a total cost of $47,032,891, and at an average price of $22.32 per share.
Thereafter, on February 28, 2023, the Wall Street Journal (“WSJ”) reported that Apollo had submitted a bid at an unspecific price to acquire Arconic and that Arconic’s advisors had reached out to each potential acquirors. In response, the price of Arconic common stock increased $4.68 per share, or 21.5%, from its price immediately before the WSJ report of $21.76 per share to a closing price on February 28, 2023, of $26.44 per share.
Finally, on May 4, 2023, during pre-market hours, Arconic announced that it had entered into an agreement to be acquired by Apollo in an all-cash transaction at $30.00 per share. In response, the price of Arconic common stock increased $6.38 per share, or 28.3%, from a closing price on May 3, 2023, of $22.55 per share to a closing price on May 4, 2023, of $28.93 per share.
Arconic made no disclosure concerning Apollo’s offers to purchase Arconic at a material premium to then-current Arconic common stock prices for approximately ten months, during which time Arconic negotiated and communicated with Apollo and Irenic and repurchased 6,465,140 shares of its common stock on the open market for a total cost of $169,976,795, and at an average price of $26.29 per share, far below Apollo’s offers.
The complaint alleges that defendants, throughout the Class Period, failed to disclose that a takeover offer at a substantial premium had been proposed by a serious bidder, artificially deflated the price of Arconic common stock, all the while Arconic was able to take advantage of those artificially lower prices by repurchasing shares.
If you purchased or otherwise acquired Arconic securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or fill out the form below, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.
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Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
