NEW YORK (TheStreet) -- Shares of RCS Capital Corp. (RCAP) continued to fall by 17.38% to $11.31 today, a day after the company announced it was canceling a deal to buy a brokerage firm from American Realty Capital Properties (ARCP) , the Wall Street Journal reports.
Nicholas Schorsch, who is chairman of both companies, could be caught in the middle of an ongoing feud, according to the Journal.
The transaction's failure deepens additional damage from the disclosure last week that two American Realty Capital executives were forced to resign after covering up accounting mistakes, the Journal reported.
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Under the terms of the collapsed deal on Monday, American Realty Capital was to sell Cole Capital Advisors to RCS Capital for $700 million in cash and stock, the Journal added.
RCS Capital is a broker-dealer and investment bank specializing in real estate, and American Realty Capital is a real estate investment trust.
Shares of American Realty Capital are up 4.39% to $8.19.
Separately, TheStreet Ratings team rates RCS CAPITAL CORP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate RCS CAPITAL CORP (RCAP) 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, compelling growth in net income and notable return on equity. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, poor profit margins and a generally disappointing performance in the stock itself."