Corvex Management has stepped up its fight against CommonWealth REIT, a real estate investment concern, by adding a boldface name to its slate of board nominees.
The activist hedge fund and its partner, Related Fund Management, said on Tuesday that they were adding the billionaire Samuel Zell to their list of director candidates. The two investors also nominated David Helfand, a co-president of Mr. Zell’s private investment firm.
“We are fully supportive of Corvex and Related’s efforts to maximize value at CommonWealth for all shareholders,†Mr. Zell said in a statement. “We see an attractive opportunity at CommonWealth uniquely suited to our expertise in leading public real estate companies and in turning around underperforming assets.â€
By enlisting the real estate mogul, Corvex and Related are hoping to convince fellow shareholders that they can install a better set of directors than Commonwealth’s current board. The two firms, who together own 9.6 percent of the REIT, have argued that the company needs an overhaul. That should begin with its board, which the funds argue is beholden to the company’s controlling family, the Portnoys.
The activist investors led an effort to unseat Commonwealth’s board last year, but the move was overturned on technicalities.
