Meister's hedge fund Corvex buys stake in American Realty Capital and pushes for a shakeup

MarketsAssociated Press

Keith Meister's Corvex Management disclosed a 7.1 percent stake in American Realty Capital in a bid to shake up the board at the troubled real estate investor.

Shares of ARCP jumped nearly 9 percent in early trading Tuesday.

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In a filing with the Securities and Exchange Commission late Monday, Corvex Management LP said it has already had discussions with ARCP's board.

The New York real estate trust replaced its chief financial officer and chief accounting officer after it discovered that key parts of its financial statements were incorrect.

Shares sank to an all-time low in October when the ARCP said its adjusted funds from operations were intentionally overstated.

Earlier this month, its founder and Executive Chairman Nicholas Schorsch stepped down.

In a printed statement, ARCP said that it is pleased that the hedge fund run by the activist investor "shares its belief that ARCP is an attractive investment" and confirmed the talks with Corvex. ARCP said it is seeking "to stabilize and strengthen" its business.

Shares of American Realty Capital Properties Inc., which holds thousands of properties in its portfolio, rose 72 cents to $9.20. Its shares are down 27 percent from a year ago.