CommonWealth REIT Gets Buyout Bid From Corvex and Related

The two firms offer $24.50 per share of the trust.

Eric Volkman
Eric Volkman
Mar 28, 2013 at 12:00AM

CommonWealth REIT (NYSE:EQC) has received an unsolicited buyout bid from investors Corvex Management and Related Fund Management. The two have offered $24.50 per share of up to 100% of the real estate investment trust.

Corvex and Related have been on the hunt for CommonWealth for some time. Earlier this month, they filed a preliminary consent solicitation statement with the Securities and Exchange Commission, in which they sought to remove the REIT's board of trustees in its entirety. At the moment, the two entities together hold nearly 10% of CommonWealth's stock.

CommonWealth said that its board of trustees would "carefully review the indication of interest in consultation with its legal and financial advisors, and pursue the course of action that it believes is in the best interests of CWH and its shareholders." It added that those shareholders need not take any action at present.