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Elliott Management takes large stake in PulteGroup, sources say; shares spike

Paul Singer speaking at Delivering Alpha 2015 in New York.
David A. Grogan | CNBC
Paul Singer speaking at Delivering Alpha 2015 in New York.

Elliott Management has taken a large position in PulteGroup and that the firm has told the company of its stake, sources told CNBC on Tuesday.

PulteGroup shares popped, gaining 4 percent after the news.

PHM intraday chartSource: FactSet

Sources also said Elliott's stake is larger than 4 percent, but smaller than 5 percent. A stake of 5 percent or more would require a Securities and Exchange Commission filing.

The stake comes as CEO Richard Dugas is under fire from PulteGroup founder William Pulte and his grandson. Dugas has said he'll retire in May of 2017, but the two men are pushing for a faster succession.

Both men have been critical of PulteGroup's performance relative to its peers.

In a statement, Pulte said: "Elliott recently informed us that they have taken a position in the company. We welcome dialogue with all of our shareholders."

Elliot did not immediately respond to CNBC's request for comment.