Mack-Cali Realty Corp. activist shareholder Bow Street LLC aired concerns over an abrupt move by the real estate investment trust's chairman to end settlement talks with Bow Street.

In a letter sent May 17 to Mack-Cali Chairman William Mack, Bow Street said that following "several conversations" between the parties over the last week, the REIT had agreed to form a strategic review committee of its board to review the company's direction. The committee would consist of two Bow Street nominees and two Mack-Cali incumbent directors.

Bow Street, which owns approximately 4.5% of the REIT's outstanding common shares, also said the parties had agreed in advance on the directors that would comprise the strategic review committee and that the committee would have the mandate to review any unsolicited proposals that Mack-Cali might receive.

Bow Street, however, noted that Mack said the proposed "changes did not work." "Before giving us a moment to speak, you abruptly hung up the phone, only to call us back a moment later and hang up the phone again," the shareholder noted, adding that it is still willing to continue settlement discussions with the REIT.

Mack-Cali earlier said its board had "serious concerns" regarding Bow Street's proposal to acquire the REIT's suburban and waterfront office portfolios, while maintaining that it intended to reach an amicable solution with Bow Street.

In late April, Bow Street rejected Mack-Cali's offer to add to its board two independent director candidates from Bow Street.