This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Newman Ferrara LLP Announces Investigation Of American Realty Capital Trust, Inc.

Stocks in this article: ARCT

Newman Ferrara LLP has begun an investigation into potential claims against the board of directors of American Realty Capital Trust, Inc. (“ARCT”) (Nasdaq: ARCT) concerning the proposed acquisition of American Realty by Realty Income Corp.

On September 6, 2012, ARCT announced that it had entered into a merger agreement to be acquired by Realty Income. Under the proposed agreement, ARCT shareholders will receive a fixed exchange ratio of 0.2874 Realty Income shares for each share of American Realty owned, which is equivalent to $12.21 per share.

However, this offer price constitutes a premium of only 2% of ARCT’s trading price of $11.96 per share on September 5, 2012. In addition, this 2% premium offer price comes on the heels of the July 31, 2012 announcement by William Kahane, ARCT’s chief executive officer, that “[w]e have solidified our financial position” and “I could not be more pleased with the company’s performance these last three months. Since listing our shares on the NASDAQ on March 1, 2012, American Realty Capital Trust has outperformed the broader equities market, reaffirmed its earnings guidance, forecasted earnings growth of 13% based on AFFO estimates for 2012 and 2013, announced a dividend increase, confirmed its acquisition program by placing $64 million under contract of property purchases consistent with its investment strategy, and demonstrated continued improvements in its overall balance sheet metrics.”

ARCT’s Board of Directors has unanimously approved the merger agreement which, subject to shareholder approval, is expected to close before the end of 2012.

Newman Ferrara LLP’s investigation concerns whether ARCT’s Board of Directors has breached its fiduciary duties to act in the best interests of ARCT’s shareholders and to take all necessary steps to ensure that ARCT’s shareholders receive the maximum value readily available for their shares of ARCT common stock.

Concerned investors are encouraged to contact Newman Ferrara attorney Roy Shimon at (212) 619-5400 or to discuss this investigation, their rights, or potential remedies.

Newman Ferrara maintains a multifaceted practice based in New York City with attorneys specializing in complex commercial and multi-party litigation, securities fraud and shareholder litigation, consumer protection, civil rights, and real estate. For more information, please visit the firm website at

Copyright Business Wire 2010

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,191.37 -195.84 -1.13%
S&P 500 2,002.16 -27.39 -1.35%
NASDAQ 4,637.9940 -43.5030 -0.93%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs