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Consent solicitation victory not the end of the battle for CommonWealth

  • Corvex and Related's consent solicitation vote (March 20) for CommonWealth REIT (CWH -0.6%) is at best (assuming a victory for the dissident shareholders) only a beginning in the battle to wrest control of the company from the Portnoys, writes law professor Steven Davidoff.
  • "Lawyers are clever," reminds Davidoff, and even if the Portnoys can't wiggle out of a vote going against them, they still have a management contract with CommonWealth. Could this be terminated? What would be the cost? RMR's management fees in 2012 were $77.3M.
  • A reminder: Corvex and Related need a whopping 2/3 of the votes to unseat the Portnoys and the rest of the Commonwealth board, though last year's attempt (invalidated by an arbitration panel) received more than 70% approval.
  • Seemingly, at least beginning to price in a victory for shareholders, CWH is up 15.3% YTD.
  • In other news, beginning today and running through March 24, shareholders owning at least $2K of company stock for at least one year may make board nominations. The existing board continues to diligently search for qualified independent directors.
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Comments (2)
  • jjason
    , contributor
    Comments (487) | Send Message
    I urge everyone to sign and mail the gold card from Corvex/Related.


    Long 1,500 shares of CWH.
    21 Feb, 12:26 PM Reply Like
  • User 19508621
    , contributor
    Comment (1) | Send Message
    Too little, too late by current management. I voted my 4,000 shares for removal of board and urge my fellow shareholders to do likewise. Lets unlock the real value of CMH.
    21 Feb, 10:20 PM Reply Like
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