No. of Recommendations: 3
It is an interesting subject the potential for hostile takeover of a REIT. You cannot get too large a holding in a REIT. So you have to count on getting the backing of other holders, such a pension funds, etc. But the certainty of even getting the backing of enough shareholders would not be there. Then you have the poison pills, etc.

Also, CWH has terms in some of its large debts that in the event of change of management that the debt becomes due. No doubt inserted at the request of RMR. So that is another sort of poison pill, in addition to any more typical poison pill.

I suppose that one arrange for other entities to cooperate with you and also buy large segments of the company (up to 9.8%), but then there would be a question of whether that was an association owning more than 9.8%.

The laws are much too much in favor of entrenched management generally and especially for REITs. I suspect that RMR is mortally wounded here, but they will fight to the end. After all, another year in power is another year of nice fees. They will have CWH pay for the lawyers.
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