NEW YORK (TheStreet) --Shares of American Realty Capital Properties Inc. (ARCP) are lower by 12.29% to $7.78 at the start of trading on Monday morning, after RCS Capital Corp. (RCAP) announced it has terminated its agreement to acquire Cole Capital Partners LLC and Cole Capital Advisors Inc. from America Realty.
RCS Capital did not offer a reason for canceling the previously disclosed definitive agreement.
However, the announcement comes as American Realty is facing an FBI investigation into the concealment of accounting errors on the part of the company, Bloomberg reports.
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Last month, American Realty agreed to sell its "Cole Capital" business for $700 million, Bloomberg added.
Shares of RCS Capital are lower by 14.50% to $14.03 on Monday morning.
Separately, TheStreet Ratings team rates AMERICAN RLTY CAP PPTY INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMERICAN RLTY CAP PPTY INC (ARCP) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including poor profit margins and a generally disappointing performance in the stock itself."