(Adds statement of board support for CEO)
Jan 30 (Reuters) - Some of Arconic Inc’s biggest shareholders are pressing the company to remove Chief Executive Klaus Kleinfeld, the Wall Street Journal reported on Monday, citing people familiar with the matter.
The push comes less than three months after Alcoa Inc split into two entities, Alcoa Corp - the legacy raw aluminum maker - and Arconic, its metal parts business.
The shareholders are unhappy with Alcoa Inc's performance and blame Kleinfeld for the company's spending and history of missed forecasts prior to the split, among other complaints, the Journal reported. (on.wsj.com/2kGNlS0).
The shareholder pressure on Arconic also comes after activist investor Elliott Management Corp disclosed a 10 percent stake in the company last November, saying the stock is “dramatically undervalued.”
Arconic said in statements on Monday that Kleinfeld had the “unanimous support” of Arconic’s board and that his strategy of separating Alcoa has been “highly successful.”
“Management has been relentless in driving costs down and productivity up, taking $4.4 billion of cost out of Alcoa Inc from the time Mr. Kleinfeld joined, through separation,” Arconic said.
Elliott first invested in Alcoa in 2015, and struck a deal with the company prior to the spin-off, which avoided a proxy fight and allowed three Elliott-supported directors to serve on both companies’ boards.
That agreement, struck in February 2016, was a one-year truce between the two sides, which is now expiring.
Alcoa Inc’s split had come at a time when aluminum prices hovered around historic lows.
Arconic, which provides aluminum and titanium alloys used in planes and cars, will report quarterly results on Tuesday. The deadline for nominating shareholders to the company’s board is Feb. 5. (Reporting by Michael Flaherty, Alwyn Scott and Arunima Banerjee in Bengaluru; Editing by Sandra Maler and Tom Brown)
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