Schottenstein Finally Gets His Wish

SAN DIEGO-Retailer Jay L. Schottenstein, a vocal critic of Burnham Pacific Properties Inc. who led efforts to topple management at thetroubled REIT, has emerged as the apparent winner in a long fight for control of the company’s board.

A group formed by Schottenstein and Michael L. Ashner owns 9.8% of Burnham common stock. Under the agreement announced by Burnham on Tuesday, the San Diego-based company has made Schottenstein co-chairman of its board and amended its shareholder’s rights plan to allow the Schottenstein group to own up 19.9% of its common stock.

In exchange, the Schottenstein group has agreed to drop litigation against the companyand vote its shares in favor of both Burnham Pacific’s previously announced liquidation plan and its own nominees for the board.