Activist rumblings at American Capital

|By:, SA News Editor

"The Company needs to pause on large-scale transactions and rebuild its credibility the only way it can: by solidly executing its organic operations for an extended period of time," writes Marcato Capital in a letter to American Realty Capital (ARCP) lead independent director Leslie Michelson. Marcato owns about 2.4% of the company.

Equity sale: "We were extremely frustrated by the Company's recent equity issuance at $12 per share.  We found it disturbing that the Company would issue equity after repeatedly stating publicly that it had no intention to do so, and at a price that it has repeatedly acknowledged undervalues the shares."

Deals: "ARCP's rapid acquisitions ... have made the Company's financials complicated and difficult to understand ... The best evidence of this is that the Company itself seemingly cannot keep its own financials straight."

Shares +0.25% premarket

Previously: Over one-third vote against American Realty executive pay plan