The multibillion-dollar sale of Arconic, which manufactured flammable panels tied to the deadly London tower fire in 2017, fell through after the company’s board rejected offers from private equity firms, including Apollo and Blackstone.
Apollo had even secured financing on Wall Street to fund the deal, offering Arconic $22.20 per share, according to the Financial Times.
The Philadelphia-based manufacturing company supplied the cladding panels fitted to the outside of the Grenfell Tower in West London, which was engulfed by a fire two years ago, killing 72 people and displacing 200 households.
Potential buyers of Arconic were challenged by the potential liabilities tied to the fire and lawsuits filed by unhappy investors.
While lawyers say that damages awards to victims in the U.K. is unlikely, if victims persuade an American court to assume jurisdiction, it’s more likely that Arconic would have to pay out settlements to victims. [FT] – Katherine Kallergis