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Monday, April 15, 2013

CommonWealth rejects Related and Corvex offer, moves to protect board, (NYSE: CWH)

Office building operator CommonWealth REIT rejected a conditional takeover offer by Related Fund Management LLC and Corvex Management LP and adopted measures that make it more difficult to remove its board members. Corvex, run by former Carl Icahn associate Keith Meister, along with Related, has been seeking changes at CommonWealth since late February when it announced a public offering of its stock. Together, the two own about 9 percent of CommonWealth.CommonWealth said the buyout offer "appeared to be part of a plan by Corvex/Related to seize control of CWH for their own benefit".The REIT said it has adopted provisions of the Maryland Unsolicited Takeovers Act, under which its board of trustees cannot be removed without cause. ()The activist investors oppose the structure under which CommonWealth's management is compensated based on the assets under management, instead of profitability.

CommonWealth REIT (CWH) is a real estate investment trust (REIT). Shares of CWH fell by 0.09% or $-0.02/share to $22.90. In the past year, the shares have traded as low as $13.46 and as high as $25.25. On average, 4264580 shares of CWH exchange hands on a given day and today's volume is recorded at 203367.



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