Arconic Inc. said it was willing to accept two board directors backed by Elliott Management Corp., offering a compromise to avoid a proxy fight in which the investment firm controlled by billionaire Paul Singer is seeking four seats. New nominees will require Arconic to issue new proxy materials.
The hedge fund has proposed a five-member slate of director nominees to be voted on by shareholders at the annual meeting.
Elliott on Monday said it has not nominated any of its employees or affiliates to Arconic's board and that shareholder nominees will have no ties with Elliott.
But Elliott fired back, describing the offer as a "sign of desperation" and calling the board "entrenched" amid the drama around the freakish circumstances behind last week's sudden resignation of its Chief Executive and Chairman Klaus Kleinfeld. Elliott also says Kleinfeld also sent a commemorative soccer ball.
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If Elliott doesn't agree, it said the board would consider nominating new independent director candidates. Details of the letter emerged late last week, with Kleinfeld insinuating in the April 11 note that Singer had misbehaved at the 2006 World Cup in Germany.
Since his ousting, Kleinfeld has resigned from his positions on the boards of Morgan Stanley and Hewlett-Packard Enterprises.
Elliott, which holds 13.2 percent of Arconic stock, was not immediately available for comment.
Bruised by a battle that spurred the ouster of CEO Klaus Kleinfeld last week, the aluminum parts maker announced Monday that it is postponing its annual meeting - originally scheduled for May 16 - to the end of the month.
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