Alcoa’s split still has two survivors

Article Excerpt

To unlock value for investors, on November 1, 2016, the old Alcoa Inc. split into two separate companies—Arconic Inc. (focused on manufactured aluminum products) and spinoff Alcoa Corp. (focused on bulk aluminum). For every three of the old shares investors held, they received three shares in Arconic and one in Alcoa. Arconic Inc. then split into two companies on April 1, 2020: Howmet, a maker of industrial parts, and Arconic Corp., which makes rolled aluminum products. Each old share automatically converted to one share of Howmet; shareholders also received one share of Arconic Corp. for every four shares of Arconic Inc. they held. Arconic Corp. later accepted a friendly, all-cash takeover offer of $30.00 a share from private equity firm Apollo Global Management Inc. (New York symbol APO). Alcoa is now up 80% since the 2016 spinoff, while Howmet has soared 515% as a separate company. We still like both stocks, but prefer Alcoa for your new buying. ALCOA CORP. $37 is a buy. The…