March 6, 2014
/PRNewswire/ -- Corvex Management LP and Related Fund Management, LLC, whose separately managed investment funds collectively own approximately 9.6% of the outstanding shares of CommonWealth REIT (NYSE: CWH), today commented on the report published by Glass Lewis & Co. ("Glass Lewis"), one of the nation's leading independent proxy advisory firms, recommending for the second consecutive time that CommonWealth shareholders vote to remove the entire Board of Trustees.
of Corvex and
Jeff T. Blau
of Related issued the following statement:
"The two leading independent proxy advisory firms have now recommended the removal of all CommonWealth trustees, further validating our consent solicitation. These endorsements send a clear message – shareholders must put a stop to the nearly three decades of abysmal governance practices and end the value destruction at CommonWealth. We urge fellow shareholders to follow the strong recommendations from both Glass Lewis and Institutional Shareholder Services (ISS) and sign, date and return their GOLD consent card today."
In its report, Glass Lewis made the observations below:
Regarding the case put forth by the Portnoy Board:
"Faced with the very clear prospect of a shareholder-led eviction, we find the board elected to submit little more than a redux of its previously failed arguments and suspect methodologies. We expect this circumstance speaks less to the current trustees' ability to submit strong arguments, and more to the fact that there are so few strong arguments to submit in favor of the current trustees: CW's unaffected returns have been objectively poor by any reasonable methodology, the fees paid to RMR have been both exorbitant and disproportionate to the middling gains realized by investors and the board has more than once attempted to impose sharply regressive governance policies on CW's independent owners."