WeWork committee pushes back against SoftBank, defends right to represent shareholders

spike

FILE PHOTO: A WeWork logo is seen at a WeWork office in San Francisco, California, U.S. September 30, 2019. REUTERS/Kate Munsch

(Reuters) – A special committee of WeWork board members on Monday rejected an assertion by SoftBank Group Corp (9984.T) that it does not have authority to represent the interests of minority shareholders of the office-sharing startup.

The committee had negotiated a $3 billion tender offer which was part of a $9.6 billion rescue financing package that SoftBank agreed with WeWork in October that gave it control of the company.

SoftBank earlier this month said it would not press ahead with the tender offer because several pre-conditions had not been met, frustrating WeWork’s minority shareholders, who were expecting a payout. They included co-founder and former Chief Executive Officer Adam Neumann.

“SoftBank’s ploy attempts to prevent the more than 850 current and former WeWork employees who tendered stock worth over $450 million from obtaining any remedy for SoftBank’s wrongful conduct,” the committee said in a statement.

SoftBank did not immediately respond to a Reuters request for comment.

Reporting by Bharath Manjesh in Bengaluru; Editing by Shounak Dasgupta

Source Article

Next Post

IBM misses revenue estimates but cloud jumps; withdraws forecast

FILE PHOTO: A man stands near an IBM logo at the Mobile World Congress in Barcelona, Spain, February 25, 2019. REUTERS/Sergio Perez (Reuters) – International Business Machines Corp (IBM.N) posted quarterly revenue slightly lower than Wall Street expected, but beat profit targets as sales in its high-margin cloud computing business […]