SAN FRANCISCO--(BUSINESS WIRE)--Orbis Investment Management, a global investment firm, today released a letter sent to Arconic’s Board of Directors. In this letter, Orbis reiterated its intent to vote for Elliott Management Corporation’s slate of independent nominees and joined other institutional shareholders in calling for broad-based change in the Board. The full content of the letter is below:
May 7, 2017
Dear Arconic Directors,
Orbis Investment Management Limited (“Orbis”) is a global investment firm, with over $30 billion in assets under management by it and its affiliates. Through the Orbis family of funds, we have been shareholders of Arconic Inc. (“Arconic” or the “Company”) and its predecessor company, Alcoa Inc., since 2013. We are currently one of your largest shareholders with approximately 18.9 million shares, or 4.3% of shares outstanding.
We are fundamental investors and take a long-term approach to the stewardship of our clients’ capital. Over the 25-year history of Orbis, we have rarely spoken publicly about the need for leadership change at one of our investment holdings. We feel a duty to do so at this time given the pattern of intolerable behaviour overseen and endorsed by the current Arconic board.
Recent communication from the board has characterized this proxy fight as a dispute with one self-interested shareholder, Elliott Management. That is false. At least five institutional shareholders, including Orbis, representing more than 20% of the Company’s shares outstanding, have publicly called for broad-based change in this board. Our objective is simple – we want the best outcome for Arconic and its shareholders.
Unfortunately, the Company’s board, who own less than 0.1% of outstanding shares, are not well aligned with shareholders. Fortunately, in a few weeks all shareholders of Arconic will formally make their voices heard.
We intend to support Elliott’s proposed slate. We believe many other shareholders will vote the BLUE proxy card as well. This expression is a mandate for change and new board leadership. We urge you to listen to the voice of your owners.
Adam R. Karr
Orbis Investment Management (U.S.), LLC(1)
(1) For clarity, in connection with my role at Orbis Investment Management (U.S.), LLC, I am the ultimate decision-maker on the Orbis U.S. Equity Fund’s holdings. Additionally, I act as a senior advisor to William Gray, who is the ultimate decision-maker on the holdings in most of the other Orbis Funds.
Notes to Editors:
Orbis was founded in 1989 and manages over $30 billion across a range of long-only equity and absolute return strategies using a fundamental, long-term and contrarian investment philosophy. Its flagship Global Equity strategy has outperformed its benchmark by approximately 5% per annum net of fees over more than 25 years. All fee structures are performance-based and the firm’s employees, management and owners are significant investors in the Orbis Funds. Headquartered in Bermuda, Orbis employs over 300 professionals in nine global locations. www.orbis.com