Arconic jumps as Apollo reportedly moves toward acquisition

Luke Sharrett | Bloomberg | Getty Images

Aluminum coils sit on the floor of the Arconic Inc. manufacturing facility in Alcoa, Tennessee.

Arconic shares rose as much as 10 percent in after-hours trading on Tuesday following a report that Apollo Global Management is in advanced talks to acquire the company.

Reuters had reported last week that Arconic was weighing the $11 billion acquisition offer, but now says that a deal could be reached as early as next week.

Apollo’s offer is around $23 per share, higher than Tuesday’s closing price of $19.70 per share. Another group that included Blackstone Group and Carlyle Group was interested in making a deal, but it needed three more weeks to complete due diligence on Arconic, according to Reuters.

The stock closed up 2.5 percent on Tuesday after the lightweight materials manufacturer reported third quarter earnings numbers that beat expectations on the top and bottom lines. The company also raised its future earnings guidance.