Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Proxy firm ISS recommends Zendesk shareholders back $10.2 billion go-private deal

Published 09/06/2022, 03:29 PM
Updated 09/06/2022, 03:30 PM
© Reuters. Zendesk logo is seen in this illustration taken June 27, 2022. REUTERS/Dado Ruvic/Illustration

(Reuters) - Software company Zendesk (NYSE:ZEN) Inc's shareholders should vote for a planned acquisition by a group of private equity firms, a prominent proxy advisory firm recommended on Tuesday.

Institutional Shareholder Services (ISS) warned that there would be "significant downside risk" if Zendesk shareholders failed to approve the proposed deal.

The proxy firm issued its recommendation days before shareholders are set to vote on Sept. 19 and after hedge fund and investor Light Street Capital Management proposed that Zendesk remain independent.

"Support FOR the proposed transaction is warranted," ISS wrote in its report, citing value in the deal and "significant downside risk of the standalone option".

Last week, Light Street said it would vote against the proposal by a consortium led by private equity firms Hellman & Friedman and Permira to pay $77.50 a share in cash for Zendesk.

Light Street instead proposed that it remain a standalone public company and find a new top boss.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.