By Joshua Burd
Mack-Cali Realty Corp. has postponed its annual stockholders meeting this week amid ongoing talks with a dissident investor group that has sought to take over its board.
The Jersey City-based real estate investment trust on Wednesday said it was engaged in discussions with Bow Street Special Opportunities Fund XV LP and certain of its affiliates. The company added that it will announce the new date of the annual meeting, which was scheduled for Wednesday, at a separate time.
The announcement follows a report by Reuters on Tuesday night that Bow Street was close to gaining control of Mack-Cali’s 11-member board, citing preliminary voting numbers and sources familiar with the matter. The report noted that all votes had not been cast at the time of publication and that a representative for Bow Street declined to comment, while a Mack-Cali representative could not immediately be reached.
The proxy battle dates back to last year, when Bow Street successfully gained four seats on the board of directors. The hedge fund, which owns 4.5 percent of Mack-Cali’s outstanding stock, has offered a slate of eight nominees for this year’s election, who were slated to go up against the REIT’s own board candidates.
On Friday, Mack-Cali Realty Corp. said it was withdrawing three of its incumbent nominees, including CEO Michael J. DeMarco, in response to shareholder feedback. The move came after three proxy advisory firms recommended shareholders vote for Bow Street’s candidates.
DeMarco remains CEO, although the dissident investor group has repeatedly called for his removal as it has ramped up its pursuit of the board majority.