Related, Corvex Confirm Raised Bid for CommonWealth REIT
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 (NYSE: 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.
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
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