Elliott Management, the activist hedge fund run by Paul Singer, has made some shocking claims about Arconic's newly departed CEO, who resigned Monday amid an ongoing effort by the activist fund to persuade the company to get a new chief.
In a surprise move, Klaus Kleinfeld stepped down as chair and CEO of Arconic and resigned from the company's board after the company said he displayed "poor judgment" in sending a letter directly to a senior officer of Elliott Management. The contents of the letter are still unknown.
Later in a release, the activist firm slammed Kleinfeld, saying "the letter read as a threat to intimidate or extort a senior officer of Elliott Management based on completely false insinuations, a threat that we took seriously and about which we immediately and privately informed the Board."
Arconic declined to comment to CNBC on the exact contents of the letter.
Kleinfeld had been singled out by Elliott, which criticized his leadership and proposed a plan to boost the metal parts maker's valuation.