- 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.