Mack-Cali Realty Corp. mailed a letter to its stockholders on Tuesday in connection with the company’s upcoming 2019 annual meeting, scheduled for June 12.
The letter reiterates that investment firm Bow Street LLC’s sole objective is to acquire Mack-Cali’s premium office assets at a lowball price or force a “fire sale” of the company.
Mack-Cali stockholders of record as of the close of business on April 16, 2019, will be entitled to vote at the annual meeting.
Bow Street and David Werner Real Estate Investments previously approached Mack-Cali with a proposal to acquire the company’s suburban and waterfront office assets, hotel joint venture interests and retail assets at a price far below fair market value.
The Mack-Cali Board reviewed and considered Bow Street’s and DWREI’s proposal and unanimously determined that the proposal was grossly inadequate, illusory and unworkable.
Now, Bow Street has launched a proxy contest to facilitate its self-interested proposal or, failing that, make a quick profit by forcing a sale of the company at a “fire sale” price to the detriment of long-term Mack-Cali stockholders.
In its proxy materials, Mack-Cali says Bow Street omitted important information and included a number of misleading assertions and outright misstatements. Despite Bow Street’s attempts to disguise its self-serving agenda, the company believes that Bow Street’s sole objective is to acquire Mack-Cali’s premium office assets at a grossly inadequate price.
The Mack-Cali board said it is open to all alternatives to maximize stockholder value, including a potential strategic transaction. However, the board believes that it is critically important that Mack-Cali’s ongoing asset portfolio transformation be completed in order to position the company to obtain the maximum value for stockholders in a potential sale or other strategic transaction.