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Thursday, March 28, 2013

Related Cos, Corvex lower offer price for CommonWealth REIT, (NYSE: CWH)

Activist investor Keith Meister and real estate major Related Cos lowered their offer price for CommonWealth REIT to $24.50 per share from $27, citing the office building operator's recently completed equity offering.Related and Meister's Corvex Management LP, which together own about 9 percent of CommonWealth shares, also said they would continue to pursue the removal of the company's board if it was not open to being acquired by them or another buyer."If you are prepared to enter into good faith negotiations with us, we could negotiate and announce a transaction in less than three weeks," Related and Corvex said in a letter to the CommonWealth board.The activist investors oppose CommonWealth's externally managed structure under which its management is compensated based on the assets under management, not profitability.

CommonWealth REIT (CWH) is a real estate investment trust (REIT). Shares of CWH traded higher by 0.27% or $0.06/share to $22.25. In the past year, the shares have traded as low as $13.46 and as high as $25.25. On average, 3454630 shares of CWH exchange hands on a given day and today's volume is recorded at 3571683.