UPDATE 2-Arconic taps veteran GE exec as its CEO

* Chip Blankenship's appointment effective Jan. 15

* Arconic raises 2017 revenue forecast

* Keeps adj. EPS outlook unchanged

* Shares down 3 pct in early trading (Adds background, forecast; updates share price)

Oct 23 (Reuters) - U.S. specialty metals maker Arconic on Monday named a veteran of General Electric as chief executive, six months after the company's former CEO resigned under pressure from its largest shareholder.

The company tapped Chip Blankenship as its CEO, a move that pleased Elliott Management, Arconic's biggest shareholder with a 12.1 percent stake.

The activist investor, which had another choice for CEO, had been pushing for changes at the company and at the beginning of the year nominated directors to the board. It also has been trying to get Arconic to boost its stock price.

"Chip Blankenship is an excellent selection... We have confidence that Chip will deliver the results and returns that Arconic is capable of producing," Dave Miller, senior portfolio manager at Elliott, said in a statement.

Arconic's former CEO Klaus Kleinfeld resigned in April after the company found he sent a letter in "poor judgment" to Elliott, with whom it was embroiled in a proxy war.

Elliott's choice to lead Arconic had been Larry Lawson, who resigned as CEO of aircraft parts supplier Spirit AeroSystems Holdings Inc in 2016.

Arconic, which makes engineered metal parts for the aerospace, automotive and other industries, said the appointment of Blankenship, a 24-year GE veteran, is effective Jan. 15.

A metallurgist by training, Blankenship, 51, brings 20 years of aerospace experience to Arconic, having worked across GE's aviation businesses. He previously led GE Aviation's commercial engines operations.

Blankenship began his career with GE in 1992 and was named the CEO of GE Appliances in December 2011. He remained in the position until the unit was sold by GE to China's Haier Group for $5.4 billion in 2016.

Blankenship, who will replace David Hess, Arconic's interim CEO since April, will also become a member of the company's board.

Arconic on Monday named John Plant, an Arconic director since 2016, as chair of the board, effective immediately. Plant will replace Pat Russo, who will remain on the company's board.

Arconic also raised it full-year revenue forecast range to $12.6 billion to $12.8 billion, from $12.3 billion to $12.7 billion, but kept its 2017 adjusted earnings per share outlook unchanged at $1.15-$1.20.

Arconic's stock was down 3 percent at $26.33 in early trading. (Reporting by Ankit Ajmera in Bengaluru; Editing by Maju Samuel)