Arca Capital said it intends to work with investor Carl Icahn and other minority shareholders to oppose AmTrust Financial Services Inc.'s proposed going-private transaction.

The company, which owns about 2.4% of AmTrust's outstanding shares, said in a news release that there have been "no significant changes" to the business despite the "fundamentally strong" company's shares dropping more than 50% since January 2017. Arca Capital further claimed that the two families that control a majority of AmTrust's shares are trying to privatize the company at an "absurdly low" valuation.

"At very minimum, AmTrust management took advantage of the uncertainty in the company's situation and the unfavorable market conditions to attempt to take AmTrust private on the cheap," Arca Capital Chairman Pavol Krúpa said in a statement.

Icahn on May 21 announced that he filed suit against AmTrust over the proposed deal.