A lowered price has been made for Commonwealth REIT by investor Keith Meister and real estate magnate Related Cos. The new price is now at US$24.50 from the original price of US$27.00.
The reason for the price lowering is the recent completion of the REIT's equity offering. The offering parties own currently own 9% of the REIT shares. It vowed to continue in its quest to remove the members of the board should they not be amenable to acqusition by the venture or by another interested purchaser.
In a joint letter to the Commonwealth Board, Corvex and Related drew battle lines by saying, "If you are prepared to enter into good faith negotiations with us, we could negotiate and annoince a transaction in less than three weeks."
The investors have continually opposed the external management structure, where management is paid based upon the assets of the management and not the profitability of the enterprise.
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