Tuesday, February 26, 2013
Corvex Capital's Presentation to CommonWealth
Corvex Capital Management, run by Keith Meister - a a onetime Carl Icahn protege who started activist fund Corvex Management LP. Announced today that he partnered with real estate investment firm Related Cos. to purchase 9.8% CommonWealth's existing shares to challenge the company’s plan to issue stock to pay off debt. They filed a 13D and a presentation outlining their plans. Meister and Blau not only want to thwart the issuance of new stock, they are also striving to overhaul the board and would even be willing to buy the company’s assets at a premium to its current market price, the filing shows.
Corvex has been active of late, with Keith taking a seat on the board of the food company Ralcorp Holdings and once their agitating for a sale which resulted in ConAgra acquired Ralcorp last month for $5 billion. Last yearh joined the security business ADT's board of directors after taking a large stake in the company. Corvex has about $3B in AUM.
In the presentation he outlines what he thinks is wrong with their current proposal and operations and then offers suggestions on how they can unlock additional value. Ultimately he thinks they could be worth $54 per share vs. their current trading price of $21.16 (note they have surged 35% since the filing of the 13D).
Overall the presentation is well put together and Corvex is a group definetely worth following.
Enjoy.
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