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CommonWealth REIT (NYSE: CWH) today announced that it has mailed a letter to shareholders asking them to support the Board’s continuing efforts to create long term value for all shareholders rather than the ongoing effort by Related Fund Management, LLC and Corvex Management LP (“Related/Corvex”) to seize control of CWH without paying shareholders anything for that control.
Adam Portnoy, Managing Trustee and President of CWH, made the following statement:
“The CWH Board and management are successfully executing on the Company’s business plan and we remain focused on creating long term value for all shareholders. We believe Related/Corvex are misleading shareholders by claiming to be champions of good corporate governance and stewards of shareholder value when, in fact, their goal is to take control of CWH without paying for it.”
“Related/Corvex recently announced they have given Sam Zell $17 million of in-the-money CWH stock options to serve as one of their designated replacement trustees, but they have offered nothing to shareholders. We believe the options which Related/Corvex have granted to Zell are intended to encourage him to support the Related/Corvex short term and reckless plan for CWH, which could destroy value for long term shareholders.”
“We look forward to continuing to engage with shareholders in the coming weeks and will continue to vigorously defend the interests of all CWH shareholders.”
The CWH Board recommends that shareholders sign, date and return CWH’s
WHITE consent revocation card and discard any materials they may receive from Related/Corvex.
The full text of the letter follows:
February 24, 2014
To the shareholders of CommonWealth REIT:DO NOT BE MISLED BY RELATED/CORVEXINTO PUTTING YOUR INVESTMENT AT RISKPlease sign, date and return the enclosedWHITE consent revocation card today___________________________________________________
Jeff Blau of the Related Companies and Keith Meister of Corvex Management have recently written to CommonWealth shareholders pretending to be champions of good corporate governance and stewards of shareholder value. We believe Related/Corvex’s real goal is to take control of CommonWealth for their own benefit and without paying you anything for that control.