Corvex Management, LP and Related Fund
Management, LLC, whose separately managed investment funds collectively own
approximately 9.8% of the outstanding common shares of CommonWealth REIT
CWH, released today the following letter to the Company's Board of Trustees:
CommonWealth REIT
Two Newton Place
255 Washington Street
Newton, MA 02458-1634
February 27, 2013
Dear Members of the Board of Trustees:
As you already know, Corvex Management, LP ("Corvex") and Related Fund
Management, LLC ("Related") separately manage investment funds that
collectively own approximately 9.8% of the outstanding common shares of
CommonWealth REIT ("CWH" or the "Company").
You continue to ignore your largest shareholders' call for a cancellation of
your proposed equity offering, and you continue to ignore our proposal to
acquire all outstanding shares for $25.00 per share, as outlined in our letter
from this morning.
Today we received credible expressions of interest with respect to the
purchase of certain properties well in excess of the valuation used to reach
our $40 NAV. We continue to believe in the value of CWH under proper
management. We are prepared to increase our proposal to $27.00 per share,
subject to all other terms outlined in our prior letter. However, this
increased proposal is subject to (1) your immediate cancellation of your plans
to complete an equity offering and (2) you engaging in good faith discussions
with us within the next 48 hours to discuss our proposal and a path forward.
If you fail to do so, you will be personally responsible for the loss of value
to your shareholders. In addition, we will continue to pursue our litigation
filed today, and begin the work necessary to remove the entire Board of
Trustees.
Sincerely,
Keith Meister
Corvex Management LP
712 Fifth Avenue, 23rd Floor
New York, New York 10019
(212) 474-6700
Jeff T. Blau
Related Fund Management, LLC
60 Columbus Circle
New York, New York 10023
(212) 421-5333
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in