Arconic CEO Klaus Kleinfeld steps down

AP News
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Posted: Apr 17, 2017 10:18 AM

NEW YORK (AP) — Arconic says CEO and Chairman Klaus Kleinfeld has agreed to step down from those roles after the company's board of directors discovered that he sent a letter to Arconic's largest shareholder without telling them.

Shares of Arconic soared 8.1 percent to $27.99 after the announcement Monday morning.

In a statement Monday, Arconic says Kleinfeld "showed poor judgment." An Arconic spokeswoman declined to say what was in the letter.

Arconic Inc. makes aluminum, titanium or nickel parts for planes, cars and electronics. The New York-based company was spun off from aluminum company Alcoa Corp. last year.

Arconic says Kleinfeld sent the letter to a senior official at Elliott Management, an activist investor that has been pushing the company to replace Kleinfeld. Elliott has a nearly 12 percent stake in Arconic.