Arconic says Elliott board win could trigger $500M payment

|About: Arconic Inc (ARNC)|By:, SA News Editor

Arconic (ARNC +0.3%) says a vote to change its board could trigger a $500M payment to a corporate trust, a tactic that could make some investors think twice about backing Elliott Management’s effort to oust CEO Klaus Kleinfeld.

According to an SEC filing, ARNC says the election of the Elliott-backed directors could count as a "change-in-control,” which would require it to pay down $500M it owes to a trust that holds deferred compensation and retirement benefits.

Elliott calls the disclosure an “act of desperation” ahead of the May 16 vote, and asks why the “poison put” was not brought to light earlier.