Embattled Gosman Resigns Meditrust

Needham Heights, MA—Abraham Gosman resigned from his positions as chairman of the board, CEO & director of the Meditrust Cos. in the face of wavering investor confidence. A number of acquisitions made last year—including the La Quinta Inns purchase—left many Wall Streeters unsure of the paired-share REIT's business strategy.

The Bass family held shares of La Quinta stock and now has 9.2 percent stock in Meditrust as a result of the acquisition. Gosman's temporary replacement as chairman, Thomas M. Taylor & Co. president Thomas Taylor, has close connections to the Ft. Worth, Texas, family. But Meditrust has not suggested what role, if any, the Basses will play in the future of the company. Current president & treasurer David Benson will act as interim CEO. Meditrust plans to fill the positions permanently sometime in the next 60 days.

Meditrust's stock has declined in recent months and the volatility should continue throughout the company's transitional period. "I think now with a new management team coming in, the goal is going to be to formulate a game plan and communicate it to the Street," commented Donaldson Lufkin Jenrette associate vice president Michael Mueller. Meditrust owns approximately 800 healthcare, lodging and golfing facilities across the country.

—Jennifer Keeney, Intern