The Kushner Companies sent a hostile bid letter to rival Veris Residential, claiming poor management resulting in a significant reduction of value, then offering to acquire all outstanding shares of the REIT for $16 per share. According to Kusher, that was a 30% premium over the previous closing price, although shares were trading higher after disclosure of the letter.

The criticisms in the letter are sharp, but some lack detailed substantiation and are impossible to verify. A remark in the letter from chairman Charles Kushner about “attempts at fruitful engagement with the Board and management over the last several months” seems a reference to the Veris board’s non-response to Kushner Cos wish to manage the REIT’s properties.

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Erik Sherman

 

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