Arconic shares jump 11% on report of private equity firm's buyout interest
- According to a report from The Wall Street Journal released on Friday, the company has piqued the interest of buyout firms, including Apollo Global Management.
- The speculation comes amid a rough year for Arconic, whose shares are down about 36 percent for the year.
Metals manufacturer Arconic shares spiked on Monday after a report released from The Wall Street Journal said the company was drawing interest from private equity firms.
Shares were up as much as 11 percent Monday, putting the stock on track for it’s best day since Feb. 2, 2017 and making it the biggest gainer in the Standard & Poor’s 500 index.
According to a report from The Wall Street Journal released on Friday, the company has piqued the interest of buyout firms, including Apollo Global Management.
Apollo raised $24.6 billion last year for the largest private equity fund ever. It has not announced a large deal this year. The report said the deal, which could cost over $10 billion, is not imminent.
Arconic declined CNBC’s request for comment. Apollo did not respond immediately.
The speculation comes amid a rough year for Arconic, whose shares are down about 30 percent for the year. The New York-based company saw no change in net income in the fiscal first quarter compared with the same quarter in 2017 and slashed its 2018 profit forecasts on expectations for high aluminum prices in its earnings report on April 30.
Arconic announced updates to two long-term contracts on Monday. The company will provide Boeing with aluminum sheet and plate for all of the aircraft producer’s commercial planes, expanding on the companies’ contract from 2014 which focused on manufacturing parts for Boeing’s wings.
The New York-based company also announced a two-year joint development agreement with Lockheed Martin, a global security and aerospace company that develops automation, satellite and energy technology. Together, the companies intend to customize lightweight material systems and manufacturing processes for aerospace and defense purposes.
Read the full WSJ report here.
Source: Read Full Article