Commonwealth's Portnoy responds to defeat

"We were probably a little late to the game on governance issues," says CommonWealth (CWH +3.8%) President Adam Portnoy after an arbitration panel handed dissident shareholders a big victory. "We didn't realize how big a deal it was to investors."

Portnoy says governance changes made since the battle with Corvex and Related began have solved the issues which led to the dispute in the first place. "They got 70% of shareholders to sign a card. We realized that was a problem. That is what led us to go out and talk to our whole shareholder base ... We've checked a lot of boxes. It's very hard for investors to criticize us anymore on the governance side." Maybe not. "We firmly believe it is a foregone conclusion that shareholders will take back CommonWealth," say Corvex's Keith Meister and Related's Jeff Blau.

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Comments (5)
  • PatPatterson
    , contributor
    Comments (55) | Send Message
    Never underestimate the proclivity of shareholders to act like sheep! Everyone who cares about CWH has GOT to do everything they can to be sure that the current board of directors gets removed in favor of Related and Corvex!
    19 Nov 2013, 03:40 PM Reply Like
  • 96815234
    , contributor
    Comments (2210) | Send Message
    Bondholders too?
    20 Nov 2013, 12:57 AM Reply Like
  • davidbdc
    , contributor
    Comments (3194) | Send Message
    We were a little late to the game?????


    What? He was very early! He realized he could steal from shareholders through the vehicle of a publicly traded company!! And he did it for years and year and years.


    The guy should be charged with fraud and he and Jr. should serve hard time!!!!!


    Throw the bums out!!!!!!!!!!!!!!!!!
    20 Nov 2013, 04:10 AM Reply Like
  • toomuchgas
    , contributor
    Comments (1019) | Send Message
    Portnoy stonewalled for too many years and didn't realize that an activist hedge fund would really take him on. Shareholders for years have been looking for help. As a convert preferred shareholder I'm not sure what the best result would be but I'm still holding.
    20 Nov 2013, 03:06 PM Reply Like
  • arbtrader
    , contributor
    Comments (539) | Send Message
    My favorite move was when the lead independent director was voted out by s/h and then RE-appointed by the BOD immediately because of his 'valuable skills' and saying the s/h anger was misplaced and unfair... Telling s/h to pretty much bugger-off!
    20 Nov 2013, 03:08 PM Reply Like
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