June 21 (Bloomberg) -- Corvex Management LP and Related Cos., the investors who want to replace CommonWealth REIT’s board, said that holders of more than 70 percent of the company’s shares gave their consent to oust the trustees.
Corvex, founded by activist investor Keith Meister, and Related, a New York-based property developer, are soliciting votes to remove the trustees, claiming that an overlap in board membership and the ownership of an external management firm has led to conflicts of interest and mismanagement at the real estate investment trust. The external management company is Reit Management & Research LLC.
“We demand that the officers of CommonWealth and RMR immediately take all actions necessary to promptly call and hold a special meeting of shareholders to elect new trustees, as mandated by CommonWealth’s charter,” Corvex and Related said in a statement today. “We look forward to putting together a slate of highly qualified replacement trustees in consultation with our fellow shareholders.”
The dispute between the investors and the REIT is in arbitration. CommonWealth has said the solicitation isn’t valid under its bylaws, and urged stockholders on June 17 to take no action on it.
Tim Bonang, a CommonWealth spokesman, didn’t immediately respond to a request for comment on the investors’ statement.
CommonWealth shares were halted after earlier jumping to $23.26, their highest intraday level since April 12.
--Editors: Daniel Taub, Kara Wetzel
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