What Happened with Forest City’s Potential Sale

After nearly six months, Forest City Realty Trust Inc. announced that it has ended its strategic review process—and it did not result in a sale of the company. Instead, the Cleveland-based REIT, which had been facing activist pressure to boost shareholder value, reconstituted its board to increase the number of independent directors and reduce the influence of the Ratner family. Nine directors resigned and James Ratner, former board chairman, was named interim chairman until a substitute will be selected. The company’s former controlling shareholder RMS agreed to change its director nomination rights to two designees from four Ratner family members.