The Wall Street Journal-20080201-Post Properties May Face Proxy Fight

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Post Properties May Face Proxy Fight

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A Chicago-based hedge fund plans to launch a proxy fight today designed to force Post Properties Inc. to consider offers to sell itself.

Pentwater Capital Management LLC plans to submit a slate of five directors to Post's nine-member board, the fund said yesterday.

Post, an Atlanta-based REIT, announced last week that it was considering a roughly $2 billion offer from its founder, John Williams, who has teamed with Cadim, the real-estate advisory arm of a Canadian pension fund. Post also said its board is opening the process to other bids.

Pentwater Chief Executive Matt Halbower said he was concerned that once a Feb. 24 deadline passed for shareholders to propose alternate directors, Post's board would halt the sale process.