The Real Deal New York

Activist investment firm grabs stake in ARC

Firm led by Carl Icahn protege Keith Meister pounces after ARC's stock price plunges

December 31, 2014 08:10AM

From left: Nicholas Schorsch and Keith Meister

From left: Nicholas Schorsch and Keith Meister

Corvex Management has reported taking a 7.1 percent stake in American Realty Capital Properties, the commercial real estate firm engulfed in an accounting scandal.

Corvex holds about 64.7 million shares in the firm, Bloomberg News reported, including stock underlying call options, according to its regulatory filing. The activist investment firm, which is led by Carl Icahn protege Keith Meister, paid roughly $71.1 million for the 7.925 million owned shares and $158.1 million for the options, according to the filing cited by Bloomberg.

The accounting scandal in which errors were allegedly intentionally concealed caused American Realty Capital’s stock price to plunge in recent months and has resulted in multiple lawsuits. Three of the company’s top executives have resigned.

“We commend the board’s decision to retain qualified advisors in seeking to promptly resolve past issues and position the company to look to the future rather than focusing on the past,” Corvex said in a statement to Bloomberg. “This is a time of transition and a unique opportunity for a ‘new start’ for the company and its shareholders.” [Bloomberg News] – Claire Moses 

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