CommonWealth REIT Faces $2B Investor Buyout Threat

Law360, New York (February 26, 2013, 3:46 PM EST) -- Representatives for hedge fund Corvex Management LP and The Related Cos. teamed up Tuesday to pressure CommonWealth REIT to improve its performance, or else they would seek to remove the board of directors and potentially buy out the company for about $2 billion.

The hedge fund and the real estate giant disclosed a 9.8 percent ownership interest in CommonWealth and released a letter addressed to the REIT's management, demanding that the company rectify its persistent undervaluation of assets and “track record of underperformance.” In a second...
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