The seemingly never-ending story of the revolving boardroom door at American Realty Capital Properties Inc ARCP has now taken yet another turn.
Activist hedge fund Corvex Management LP, led by former Carl Icahn lieutenant Keith Meister, has revealed a large stake in the beleaguered REIT.
This news was confirmed by an ARCP press release after the bell on Monday, December 29, 2014.
Until recently, ARCP had been led by Executive Chairman Nick Schorsch, and former CEO David Kay, who both stepped down (along with other executives) after accounting irregularities and cover-ups were announced back in October.
On the news, ARCP released the following statement on Monday evening:
"The ARCP Board of Directors is pleased that Corvex shares its belief that ARCP is an attractive investment. ARCP has had constructive conversations with Corvex and appreciates its support of the actions the Board has taken to date. The Board will continue to prioritize transparency and an open dialogue with all stockholders, as well as the best path forward for the Company and its employees, as it seeks to stabilize and strengthen ARCP."
During a hastily called conference call on October 29, Kay stated that "based upon $1.4 billion of revenue and an assumed capitalization rate of 6.25 percent, a fair net asset value (NAV) per share would be $13.25 per share."
Shares of ARCP are up more than 8 percent in Tuesday morning trading.
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