On Thursday, David Einhorn’s Greenlight Capital disclosed an increased stake in Civeo Corp (NYSE:CVEO), a real-estate company that provides housing for workers in the Canadian oil sands and natural resource workers in Australia.

David Einhorn Sends Civeo Stock Soaring

Einhorn’s stake

The hedge fund now holds 10,658,929 shares or 9.99% following the company’s spin-off from Oil States International Inc. in the early summer. The company’s stock closed at $12.26 down $0.50 or 3.92% That, however, turned around in after-hours trading following the announcement by Greenlight and Mr. Einhorn. The stock soared to $14.13 up $1.87 for a gain of 15.25%.

Civeo, currently based in Houston, said its board believes converting to a REIT would do little to reduce most of the company’s taxes, since nearly all corporate income comes from more than 20,000 dormitory-style rooms – commonly known as “man camps” – across remote parts of Canada and Australia.

Time to move

Civeo announced last month that the company was planning to move from Houston to Canada given more favorable corporate tax rates and its business in the northern nation. The company is also looking at converting itself in a real-estate investment trust. In addition to the larger stake that Einhorn has taken in Civeo, Greenlight wrote in its filing that it supports the decision to become a trust but wants a more “aggressive” dividend policy while calling for the replacement of Chief Executive Bradley Dodson whom Einhorn believes has “lost the support and confidence” of shareholders.

The hedge fund rifts

While Civeo declined to comment after the filing was made with the Securities and Exchange Commission, Greenlight Capital announced its intention to continue its discussions with the company over its proposed strategic review and ouster of CEO Dodson.

Hedge fund Jana Partners LLC remains the largest shareholder in Civeo, and also pushed for the spin-off from Oil States and has pushed for the REIT conversion that Civeo has rebuffed. Converting to a REIT would have required a one-time payout of $720 million for taxes and other items and prefers to remain a C corporation.

While Civeo plans a move to Canada, the company warned that its move to Canada “is subject to potential future changes to tax laws and regulations.”