March 20 (Reuters) - Hedge fund Elliott Management Corp, which is in the throes of a proxy battle with Arconic Inc , demanded on Monday an independent review of the company’s voting agreement with private equity firm Oak Hill Capital Partners.
Last week, Arconic disclosed that in August 2016 the company had reached a two-year deal with its sixth biggest shareholder, Oak Hill, which had agreed to vote in favor of directors nominated by Arconic's board. (bit.ly/2mmwXuw)
The deal was part of a resolution of a “working capital adjustment” in connection with Arconic’s acquisition of aircraft parts maker Firth Rixson from Oak Hill.
Arconic said earlier on Monday that it had waived the limited voting commitment with Oak Hill.
Elliott, which owns a 13.2 percent stake in Arconic, has been pressuring the company for Chief Executive Klaus Kleinfeld’s ouster.
Elliott said on Monday that Arconic’s board must take immediate action to dismiss anyone who devised, authorized and participated in negotiating the “secret vote-buying agreement”, thereby “converting company assets for personal benefit”. (Reporting by Ankit Ajmera in Bengaluru; Editing by Maju Samuel)