CommonWealth REIT responds to recent announcement by Related/Corvex CommonWealth REIT responded to the announcement that Sam Zell and David Helfand have been enlisted by Related Fund Management LLC and Corvex Management. Adam Portnoy, President and Managing Trustee of CWH, said: “The announcement by Related/Corvex that Mr. Zell may serve as Chairman and Mr. Helfand may serve as CEO of CWH is an obvious attempt to divert shareholder attention from Related’s abysmal historical track record of operating public real estate companies. I am surprised that Mr. Zell and Mr. Helfand have joined the efforts by Related/Corvex in their pursuit of full control of CWH without first approaching CWH to fully understand the Company’s business plan and the Board’s commitment to governance enhancements. The track record of Related’s principals when they have controlled publicly owned real estate companies is certainly not in keeping with the public company governance principles that Mr. Zell has espoused. I also hope that Messrs. Zell and Helfand will be more transparent than Related/Corvex have been to date about agreements and understandings that may affect CWH, including those concerning possible future compensation from CWH and their reported option agreement to purchase $90M of CWH common shares from Related/Corvex. Although Corvex/Related have identified a handpicked slate of Trustees that will implement their plan to take control of CWH without paying other shareholders a premium, CWH shareholders should be aware that there is not a Trustee election taking place at this time. Related/Corvex are acting as though they can disregard the processes intended to ensure that all CWH shareholders have a voice.”
News For CWH From The Last 14 Days
Check below for free stories on CWH the last two weeks.
CommonWealth REIT upgraded to Buy from Hold at Stifel Stifel upgraded CommonWealth (CWH) to Buy following the sale of its stake in Select Income REIT (SIR) for $705M. The analyst said the sale will allow the company to pay down its $735M outstanding term loan revolver and views the new CFO announcement as a positive. Price target is $28.50.