Despite the objections by investors in CommonWealth REIT, the sale of thirty million shares valued at US$19 per share would proceed as planned. The objecting parties, fund manager and activist Keith Meister of Corvex Management Ltd together with Related Cos had their petition denied by a US court.
In a ruling by US District Judge Denise Casper, the court denied the plea of the investors that had been filed by Meister and Related together with the Delaware County Employees Retirement Fund. The petition filed was to ask the court to issue an injunction to block the equity offering from closing. The petitioning investors claimed that they would have purchased the shares at the US$19 offer.
CommonWealth REIT owns a number of downtown and suburban buildings together with industrial properties in many major cities such as Chicago, IL, Denver, CO and Philadelphia, PA. Corvex and Related own 9.8% of the REIT and they had offered to acquire the property firm at US$27 per share before the stock offer pricing.
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