Arconic Inc. has entered into an agreement with activist shareholder Elliott Management Corp., ending a brusing proxy battle that was due to come to a head at the company’s May 25 annual shareholders meeting.
The agreement will see Elliott nominate Christopher Ayers, Elmer Doty and Patrice Merrin for election as directors, while Arconic will nominate interim chief executive officer David Hess and Ulrich Schmidt. All other candidates previously nominated by the two sides have been withdrawn.
The company also said it will be working to reincorporate into Delaware by yearend, a move Elliott had also been pushing to see accomplished.
The certificate of incorporation and bylaws of the resulting Delaware corporation will provide for an annually elected board and contain no provisions requiring a supermajority shareholder vote.
Elliott, which owns a 13.2-percent stake in Arconic, has been embroiled in a fierce proxy battle with the U.S. company that ultimately led to the departure of Klaus Kleinfield, Arconic’s former chief executive officer.