Deals
Meister, Related Sue CommonWealth on Planned Share Sale
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Activist investor Keith Meister and Related Cos., who together own 9.8 percent of CommonWealth REIT, sued the company after it rejected their objections to a planned offering of 27 million new shares.
The plaintiffs claimed breach of fiduciary duty and are asking for an injunction to stop the share sale, according to a court filing today in Maryland state court in Baltimore. CommonWealth said it plans to issue 27 million shares and use the $450 million in proceeds to pay off debt, it said on Feb. 25. Corvex and Related are demanding that CommonWealth suspend the offering and consider a proposal to buy the company at $25 a share.