WeWork Sues Softbank for Canceling Tender Offer
New York, April 7 (Jiji Press)--A special committee of the board of The We Company, the operator of the WeWork office-sharing business, said Tuesday it has sued Japan's Softbank Group Corp. <9984> for canceling its 3-billion-dollar tender offer.
"Softbank's failure to consummate the tender offer is a clear breach of its contractual obligations...as well as a breach of Softbank's fiduciary obligations to WeWork's minority stockholders," the committee said in a statement.
"Instead of abiding by its contractual obligations, Softbank, under increasing pressure from activist investors, has engaged in a purposeful campaign to avoid completion of the tender offer," it said.
In the suit filed with a court in Delaware, the committee demanded that Softbank complete the tender offer or pay damages.
In October last year, Softbank announced 9.5 billion dollars in financial assistance to The We Company, including the tender offer. But the Japanese company this month announced the cancellation of the tender offer, saying that necessary conditions have not been met.
[Copyright The Jiji Press, Ltd.]