Arconic Is Weighing $11 Billion Offer From Apollo, Reuters Says
(Bloomberg) -- Arconic Inc., the maker of aluminum aerospace and construction products, is considering an $11 billion acquisition offer it received last Friday from buyout firm Apollo Global Management LLC, Reuters reported.
Apollo’s offer values the U.S. company at between $23 and $24 a share, according to Reuters, which cited unnamed sources. That’s as much as 12 percent higher than Monday’s closing price.
Another bidding group, comprising buyout firms Blackstone Group LP, Carlyle Group LP, Onex Corp. and Canada Pension Plan Investment Board, has yet to submit an offer for Arconic, Reuters said, citing sources. The company’s shares have surged since mid-July on a similar report about interest from Apollo Global and other private equity firms.
Arconic had said in July it was putting its Building and Construction Systems unit up for sale as part of a broad portfolio review. That move would push the company further toward the growing aerospace market as new Chief Executive Officer Chip Blankenship tries to rejuvenate the company.
©2018 Bloomberg L.P.