Elliott urges REIT Healthcare Trust of America to explore sale

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Oct 11 (Businesshala) – Activist investor Elliott Investment Management on Monday urged Healthcare Trust of America to launch a strategic review and explore a possible sale of the real estate investment trust.

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Elliott, one of HTA’s biggest investors, said the company’s long-running underperformance compared to its peers has caused disappointment and shareholders want it to target the sale. HTA shares were up 1.9% at $32.31 in mid-day trading.

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The news came months after HTA chief executive Scott Peters stepped down, which Elliott described as “sudden and unexpected”.

Elliott said in a letter, “HTA faces a challenging stand-alone future, characterized by a deprived ability to compete for acquisition targets, the inherently risky task of identifying and integrating a new CEO, and the company’s culture.” It’s a tough mission to repair and rebuild.” on the board of HTA

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HTA, which invests primarily in real estate consisting of medical office buildings, is currently headed by interim CEO Peter Ann Foss.

Investors believe HTA should review bids, including solicitation, before making a decision about its new CEO, Elliott said, warning the absence of such a review could attract a suitable candidate for the position. It will be difficult to do.

Elliott said it was confident that “highly credible buyers” would make the offer at a substantial premium to the current trading price of HTA stock.

Businesshala News first reported on Elliott last week insisting on HTA’s strategic review. (Reporting by Amrita Khandekar; Editing by Shinjini Ganguly)

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