CORRECTED-UPDATE 1-Corvex, Related lower offer price for CommonWealth REIT

Thu Mar 28, 2013 2:31pm EDT

(Corrects second paragraph to say that the buyer is Corvex and Related Cos, not CommonWealth)

March 28 (Reuters) - Activist investor Keith Meister and real estate major Related Cos lowered their offer price for CommonWealth REIT to $24.50 per share from $27, citing the office building operator's recently completed equity offering.

Related, and Meister's Corvex Management LP - who together own about 9 percent of CommonWealth shares - also said they would continue to pursue the removal of the board if the company was not open to being acquired by them or another buyer.

"If you are prepared to enter into good faith negotiations with us, we could negotiate and announce a transaction in less than 3 weeks," Corvex and Related said in a letter seen by Reuters.

The activist investors had initially proposed to buy CommonWealth last month if it cancelled its 30 million share offering, which they said was value destroying.

"In light of your recent actions, we have unfortunately concluded that you as a board are not prepared to independently undertake or evaluate any such value enhancing steps," the shareholders said in their letter.

They also said that the company should not sell its controlling stake in Select Income REIT as they believed the shares would be sold at a discount.

The investors said they had met with Barry and Adam Portnoy from the Commonwealth management team earlier this week, following a request made by the two firms on Feb. 25. (Reporting by A. Ananthalakshmi in Bangalore; Editing by Sreejiraj Eluvangal)

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