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Corvex Management LP ("Corvex") and
Related Fund Management, LLC ("Related"), whose separately managed investment
funds collectively own approximately 8.8% of the outstanding shares of
CommonWealth REIT
, today announced that their entire slate of
nominees, James Corl, Edward Glickman, David Helfand, Peter Linneman, Jim
Lozier, Kenneth Shea and Samuel Zell, were today elected to serve on the board
of CommonWealth REIT at a special meeting of shareholders. The slate was
elected by approximately 85% of the shares outstanding as of the record date
and is the culmination of Corvex and Related's efforts to allow shareholders
to exercise their rights, regain control of CommonWealth REIT and realize
value for all shareholders.
Keith Meister of Corvex and Jeff T. Blau of Related, said:
"Today is a historic milestone for CommonWealth and the REIT industry, and a
tremendous victory for shareholder rights. The election of a slate of truly
independent and accountable trustees who are committed to the future success
of CommonWealth for the long-term benefit of all shareholders finally puts an
end to a long-fought battle for shareholder democracy and perennial
underperformance at CommonWealth.
"From the very beginning, our sole focus was allowing all shareholders to
exercise their rights, offering the ability to effect change and restore
shareholder value. We are extremely gratified by the strong and broad support
we consistently received from retail and institutional shareholders. We remain
confident that the highly qualified and experienced board elected today will
work expeditiously and successfully to usher in a new era of accountability
that fosters the incentives critical in building a successful company focused
on the long-term creation of shareholder value."
Corvex and Related first announced the acquisition of their interests in
CommonWealth REIT in February of 2013, releasing a detailed plan to effect
change and realize value for all shareholders. Among other things, Corvex and
Related called for a fair and unfettered election of a new Board consisting
solely of truly independent trustees; corporate governance reform; and the
internalization of management and alignment of compensation with shareholder
returns. Despite repeated obstruction and litigation efforts by the previous
board to eliminate shareholder rights, a consent solicitation was launched in
February of 2014 and the entire board of directors was removed by a vote of
over 81% of outstanding shares of CWH in March.
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