Search
 

GMH Seeks Buyers, CEO Won't Go it Alone

NEWTOWN SQUARE, PA-The specialty REIT, which pushed the filing date of its 2005 financials to July 31, is soliciting "indications of interest."

By Marita Thomas | Updated on July 14, 2006

NEWTOWN SQUARE, PA-GMH Communities Trust’s has a special committee of its board preparing to solicit indications of interest in acquiring the company. At the same time, Gary M. Holloway Sr., chairman and CEO, informed the board that he doesn’t intend to make an independent offer to buy the company, but would consider participating in a potential acquisition by a third party.

In March, Holloway told the board he was considering an offer to buy the REIT. At that time, Ernst & Young was hired to conduct an independent review, initiated by a letter to the REIT’s audit committee by then-CFO Bradley Harris, alleging a “tone at the top” problem with management and “material weaknesses” in internal controls over financial reporting. It caused a delay in GMH’s filing of its 2005 10-K with the SEC. That has been extended for the fifth time. Now the company says it will file financials for the year ended Dec. 31, 2005 and first-quarter 2006 by July 31.

Since mid-March, Harris has been fired, replaced by J. Patrick O’Grady, and GMH and Holloway and Harris have been named in a securities fraud class action complaint filed in federal court. More than a half dozen other law firms have since joined the suit, initially filed by the locally based law firm of Berger & Montague. All are actively seeking to be contacted by people who bought GMH stock between October 2004 and March 10 this year. Through a spokeswoman, GMH has consistently said, “we believe these claims are without merit.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.