Colony Capital Settles Dispute With Investor
Downtown-based real estate investment company Colony Capital Inc. and activist investor Blackwells Capital have reached a settlement in a monthslong dispute over Colony’s leadership and direction.
The agreement calls for Colony and Blackwells to form a joint venture to buy Colony’s stock and prop up its share price. The company’s shares plunged more than 70% between Feb. 20 and March 20, alongside the broader coronavirus-driven market downturn. The Dow Jones Industrial Average fell by 34% over that same period.
Colony has also agreed to nominate Blackwells-backed Jeannie Diefenderfer to its board, handing the activist investor a fourth seat on Colony’s 12-member board.