Orange Capital has seemingly squared the activism circle. With the latest development in the New York investment firm’s dispute with the board of Partners Real Estate Investment Trust, Orange has found a way to stage a proxy fight by revealing its intentions, not hiding them.
Partners’ trustees believe that they are in the best position to operate the REIT and therefore oppose Orange’s proxy contest. Partners claims that Orange has run afoul of its advance notice bylaws. However, both policy and precedent run contrary to Partners’ argument, making it likely that this proxy fight will be noteworthy both for its unique structure and for setting limits on how incumbents can defend against activists.