Why Arconic Stock Is Soaring Today
Private equity giant Apollo Global Management (NYSE: APO) has a deal in place to acquire Arconic (NYSE: ARNC) for about $5.2 billion in cash and assumed debt. The news sent shares of the metal products manufacturer up about 26% on Thursday, coming close to matching the offer price.
Arconic has been a company in transition for most of the last decade. It was once the finished-products business of aluminum producer Alcoa, but it was spun off as an independent in 2016. Three years later, Arconic split itself again, grouping its engine products, fasteners, and other aerospace components into a separate company called Howmet Aerospace.
What remained as Arconic was a collection of rolled-metal products, aluminum extrusions, and building and construction products. The stock had more than doubled over the past three years, but of late, some investors had been questioning how well Arconic's businesses will hold up in the event of a recession.
Source Fool.com
