This Day On The Street
Continue to site
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

Dissidents Renew CommonWealth REIT Solicitation Process

NEW YORK (The Deal) -- Corvex Management and Related Fund Management said Monday, Nov. 25, they were restarting a solicitation process to replace trustees of office property investor CommonWealth REIT (CWH).

The battle between the funds, which together hold 9.6% of CommonWealth, and the management of the REIT dates back to a failed effort by the shareholder activists to block an equity issuance in early 2013 that Corvex and Related perceived as dilutive. An effort since to replace the board of the company by written consent has gone through fits and starts. An arbitration panel recently ruled that the consent solicitation was technically invalid, but outlined a path to resume the effort.

On Monday, Corvex and Related said they intend to pursue a new solicitation and planned to file a preliminary consent solicitation statement with the Securities and Exchange Commission to remove the entire board of trustees.

CommonWealth announced Monday that it set a date for its next annual meeting for June 13, 2014 and established a window to nominate directors for between Feb. 21 and March 24.

Must Read: The Deal: Sense of the Markets: For Now at Least, Euronext May Stay Single

Corvex and Related also asked Commonwealth for a shareholder list in order to communicate with the REIT's shareholders about their intention to establish a dissident slate of directors to put forward at the upcoming meeting. Previously, the funds had support of 70% of the shareholder base.

The activist investors have complained that CommonWealth's board and the REIT's outside management, REIT Management & Research LLC, are are too inter-related and that high fees and decisions made to keep the fee structure intact have lead to underperformance of the company's shares.

In September, CommonWealth restructured the fee agreement with its management company RMR.

Corvex and Related had previously floated an offer of as much as $27 per share for CommonWealth in February, which was later cut back to $24.50.

Commonwealth shares traded up Monday 17 cents, or 0.7%, at $24.34.

-- Written by Scott Stuart

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
Only $9.95
14-Days Free
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CWH $25.47 -0.12%
AAPL $95.03 0.21%
FB $116.73 0.00%
GOOG $691.02 0.00%
TSLA $248.99 0.52%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs