This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Corvex And Related Announce Ownership Of 9.8% Of CommonWealth REIT (CWH)

NEW YORK, Feb. 26, 2013 /PRNewswire/ -- Corvex Management, LP (" Corvex") and Related Fund Management, LLC (" Related") announced today that investment funds managed by them collectively own approximately 9.8% of the outstanding common shares of CommonWealth REIT (" CWH" or the " Company"). Corvex and Related believe that CWH's portfolio of real estate assets trade at a substantial discount to fair value due to a misalignment of incentives between the Company and its external advisor, REIT Management & Research LLC and track record of underperformance.  

Corvex and Related have released an open letter to the Company's Board of Trustees demanding that the Company immediately cease a value destroying equity offering and debt repurchase, and enter into discussions with Corvex and Related regarding maximizing long-term value for all CWH shareholders. They have also publicly filed a Schedule 13D, including a detailed presentation outlining a clear path to value creation for CWH. Based on a comprehensive property-by-property valuation analysis, Corvex and Related believe that CWH's NAV was approximately $40 per share as of February 25, 2013, which is generally consistent with CWH's book value of approximately $37 per share, as opposed to the closing price of $15.85 on February 25, 2013. Corvex and Related believe that if the Company implemented, among other changes, an internal management structure, basic operating performance enhancements and a more shareholder-friendly capital allocation policy, CWH could achieve a target price of more than $50 per share over a two year period.

If the Board fails to adequately respond, Corvex and Related are prepared to seek the removal of the Board so that it may be replaced with five truly independent trustees. Corvex and Related would also be prepared to acquire all the outstanding shares at a significant premium to the current market value.  Accordingly, they demand that the Company not proceed with this dilutive share issuance.  

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,001.03 +288.37 1.63%
S&P 500 2,084.98 +23.96 1.16%
NASDAQ 4,939.14 +47.9210 0.98%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs