Mack-Cali holder Bow Street issues letter to board reiterating deal proposal
Bow Street, a New York-based investment firm that beneficially owns approximately 4.5% of the outstanding shares of common stock of Mack-Cali, sent a letter to Mack-Cali's board reiterating its proposal to acquire Mack-Cali's office portfolio and highlighting the need for a reconstituted Mack-Cali board that is willing to seriously explore all solutions to maximize stockholder value. Under the terms of the proposal, Mack-Cali stockholders will receive expected net cash consideration of $8-$10 per Mack-Cali share as well as an equity distribution of a new, high-growth apartment REIT, comprised of Mack-Cali's current multifamily portfolio with a calculated net asset value of $19.20 per share. As detailed in its letter, Bow Street's proposal, made in partnership with DWREI LLC and first shared with the board on February 25, was hastily and publicly rejected prior to any meaningful inquiry from the company regarding valuation, structure, tax or other implications for stockholders. Bow Street "strongly believes that the board's perfunctory response suggests an alarming lack of commitment to good governance and long-term stockholder value, as well as an unwillingness to explore value-maximizing opportunities following years of company underperformance. Accordingly, Bow Street has nominated four highly-qualified, independent director candidates for election to the board at the 2019 Annual Meeting of Stockholders to ensure the board seriously evaluates all solutions that may achieve a superior result for stockholders."