Select Income, which has a market value of about $1 billion, applied to the Securities and Exchange Commission to allow CommonWealth to sell “all, some or none” of its shares, according to a statement today. CommonWealth will use any money raised from the share sale to repay debt and buy new buildings in city-center business districts, the statement showed.
Corvex Management LP and Related Cos. are trying to oust CommonWealth’s board and have said they are prepared to buy the Newton, Massachusetts-based company, which they claim is undervalued because of “misalignment of incentives” between the real estate investment trust and its external management. A Maryland court ruled last week that they had “failed to provide sufficient facts” to halt the arbitration of a governance dispute with the company over bylaws that make it harder for investors to replace board members.
Select Income was a unit of CommonWealth before the company’s shares were listed on the New York stock exchange last year. Bank of America Merrill Lynch is book runner for CommonWealth.
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