Billionaire Carl Icahn Plans Shake Up of AIG, Halvorsen Reveals Yet Another Energy Bet, Plus Two Other Moves

According to a separate 13D filing, Paul Singer’s Elliott Associates L.P. and its affiliates have economic exposure to Alcoa Inc. (NYSE:AA) of approximately 7.5%. This includes 86.20 million shares of common stock, including 8.60 million shares underlying exercisable stock options, and additional economic exposure of 0.9% of shares in the form of cash settled swaps with respect to 12.00 million shares. This compares with the 7.4% economic exposure revealed by a recently-filed 13D filing discussed by Insider Monkey (read more details).

Most importantly, the filing discloses that Alcoa and Paul Singer’s family of entities have reached an agreement that stipulates an increase in the size of Alcoa’s Board of Directors to 15 members, with Ulrich (Rick) Schmidt, Sean O. Mahoney, and John C. Plant joining on the Board. The aluminum producer plans to separate its Value-Add and Upstream businesses into two independent public companies in the second half of 2016. Moreover, the three freshly-nominated Directors will be appointed to the Board of Directors of the Value-Add company. 46 smart money investors tracked by Insider Monkey were shareholders of the company at the end of September and owned almost 13% of its outstanding shares. Seth Klarman’s Baupost Group added a 52.27 million-share position in Alcoa Inc. (NYSE:AA) to its portfolio during the July-to-September period.

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