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SOURCE Luxor Capital Group, LP
Demands an Independent Committee be Formed to Pursue Strategic Alternatives; Considers Litigation
NEW YORK, March 1, 2013 /PRNewswire/ -- Luxor Capital Group, LP, a New York based investment manager ("Luxor"), beneficially owns and controls in excess of 6.7 million common shares of CommonWealth REIT (NYSE: CWH), or approximately 8.0% of the common shares outstanding. Luxor is releasing the following open letter to the Trustees of CWH:
To the Board of Trustees:
On February 27, 2013, CommonWealth REIT ("CWH" or the "Company") announced that it had priced 30,000,000 shares of Common Stock in a public offering (the "Offering") at $19.00 per share. On February 28, 2013, the Issuer announced the underwriters had exercised the overallotment option on 4,500,000 shares, and on March 1, 2013, the Issuer announced that it had increased its maximum tender offer amount with respect to outstanding debt to $650,000,000. In response to these decisions by you, we are actively exploring litigation to recoup the value destroyed by the Offering and are willing to use any and all appropriate legal means to prevent further destruction of shareholder value.
We find it unconscionable that the Board of Trustees would vote to issue shares significantly below-market in light of the offer on the table from a credible buyer at a significant premium. We agree with CNBC's assessment of the transaction, which they described as "a real-life poison pill" and their mocking assessment of your decision to pursue the Offering in light of the bid- "amazing- amazing that they did this".
We demand the following steps be immediately taken by the Board of Trustees:
Luxor Capital Group, LP
General Counsel of Luxor Capital Group, LP
 CNBC, The Faber Report, February 28, 2013.
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