Arconic (NYSE: ARNC) shares rose Wednesday following a report that Apollo Global Management is in advanced talks to acquire the company.
Reuters had reported last week that Arconic was weighing the $11-billion acquisition offer, but now says that a deal could be reached as early as next week.
Apollo's offer is around $23 per share, higher than Tuesday's closing price of $19.70 per share. Another group that included Blackstone Group and Carlyle Group was interested in making a deal, but it needed three more weeks to complete due diligence on Arconic.
The stock closed up 2.5% on Tuesday after the lightweight materials manufacturer reported third quarter earnings numbers that beat expectations on the top and bottom lines. The company also raised its future earnings guidance.
The company, based in New York, trumpeted revenue of $3.5 billion, up 9% year over year; organic revenue improved 7% year over year.
Net income was $161 million, or $0.32 per share, versus net income of $119 million, or $0.22 per share, in the third quarter of 2017
Guidance showed Earnings per Share Excluding Special Items increased to $1.28-$1.34 from $1.17-$1.27. Revenue was projected at $13.7-$14.0 billion and adjusted free cash flow of ~$250 million remains unchanged.
In the third quarter, cash provided from operations of $51 million, cash used for financing activities of $32 million, and cash provided from investing activities of $65 million
Shares began Wednesday’s session popped 81 cents, or 4.1%, to $20.51, within a 52-week trading range of $16.47 to $31.17.
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