Arconic Inc.’s largest shareholder, billionaire Paul Singer’s Elliott Management Corp., said the ousting of former CEO Klaus Kleinfeld was a “necessary first step” to fix the aerospace and automotive-parts maker. Elliott said in a statement that the “poor judgment” that Kleinfeld used that got him booted, which Arconic said was an unauthorized letter sent to a senior official at Elliott, was in a fact a letter that “read as a threat to intimidate or extort a senior officer at Elliott Management based on completely false insinuations.” Elliott said it “immediately and privately” informed Arconic’s board of Kleinfeld’s “highly inappropriate” behavior. “When such conduct manifests itself in a patter as it has here, it is not a CEO problem. It is a board problem,” Elliott said. The stock was up as much as 9.8% in intraday trade, before paring gains to be up just 3.7%. It has soared 45% year to date, while the S&P 500 has gained 4.6%.
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