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CommonWealth REIT
(the “Company”) today issued the following
statement in response to the preliminary solicitation materials filed earlier
today by Corvex Management LP and Related Fund Management, LLC (“Corvex/
Related”).
CWH believes that Corvex/Related intend to solicit consents and proxies in
another attempt to seize control of the Company for short term gains, and that
a wholesale removal, without cause, of the entire CWH Board would materially
harm CWH's business and operations. CWH's Board and management intend to
vigorously defend CWH against Corvex/Related's hostile takeover campaign and
efforts to circumvent regular election processes. The entire CWH Board and
management remain focused on implementing our strategic plan to reposition the
Company's portfolio towards high value office buildings located in urban and
downtown locations and dispose of suburban properties and other non-core
assets.
Despite the disruption that Corvex/Related has caused to CWH's business and
operations for the last ten months, we have made good progress implementing
our strategic plan. Upon completion of the sale of all 85 non-core properties
we identified for sale during the last year, the large majority of CWH's
portfolio will be located in higher value central business district, or CBD,
locations, which we believe will materially increase value for all
shareholders. In addition, after meeting with many of our shareholders over
the last few months, we have committed to several corporate governance
changes, including amending our management agreement and increasing the size
of our Board. We have made significant progress implementing these governance
changes and expect to make additional announcements in the near future.
The Board and management team have, and continue to be, committed to creating
and protecting shareholder value. We are preparing CWH's preliminary
revocation materials, which will be filed with the Securities and Exchange
Commission, of SEC, in the near future. Our materials will provide
shareholders with the information they need to understand why we believe the
Corvex/Related hostile takeover is not in shareholders' best interests. We
urge shareholders to review these materials when they are filed with the SEC.
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