Core Scientific holders should reject CoreWeave bid, ISS says

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Core Scientific (NASDAQ:CORZ [https://seekingalpha.com/symbol/CORZ]) shareholders should reject CoreWeave's (NASDAQ:CRWV [https://seekingalpha.com/symbol/CRWV]) $9 billion planned acquisition, proxy firm ISS recommended. Core Scientific shares rose 6.3% in after-hours trading.

The speed of the M&A process raised issues over whether the Core Scientific (NASDAQ:CORZ [https://seekingalpha.com/symbol/CORZ]) board fully evaluated alternatives, according to a Bloomberg report on Monday, which cited the ISS recommendation.

Core Scientific's share price since the deal was announced “has sent a clear signal that the market believes the company’s value is greater than the offer,” the firm said in its report, according to Bloomberg.

Core Scientific (CORZ [https://seekingalpha.com/symbol/CORZ]) holder are expected to reject [https://seekingalpha.com/news/4503332-core-scientific-holders-expected-to-reject-coreweave-deal---report]the CoreWeave (NASDAQ:CRWV [https://seekingalpha.com/symbol/CRWV]) deal at a shareholder vote on Oct. 30, CNBC's David Faber reported earlier this month, citing activist investors and large holoders. This comes after CoreWeave has stated several times that it has no intention of increasing its offer, including a statement on Thursday that its July 7 offer was its "best and final." [https://seekingalpha.com/pr/20269846-coreweave-reaffirms-strategic-rationale-of-its-proposed-acquisition-and-financial-benefits-to]

Core Scientific holders have publicly come out against the proposed $9 billion deal, saying that it undervalues CORZ. Some investors believe Core Scientific is worth more than the original valuation, and should be bought for a figure closer to $25 a share, or $11.5bn, the Financial Times reported in August.

Under the proposed agreement, Core Scientific (CORZ [https://seekingalpha.com/symbol/CORZ]) shareholders would receive 0.1235 newly issued shares of CoreWeave for each share they hold.

MORE ON CORE SCIENTIFIC, COREWEAVE

* CoreWeave: 3 Reasons The Core Scientific Acquisition Is Mutually Destructive [https://seekingalpha.com/article/4830847-coreweave-3-reasons-the-core-scientific-acquisition-is-mutually-destructive]
* CoreWeave: A Trillion-Dollar Play In The Making [https://seekingalpha.com/article/4829660-coreweave-a-trillion-dollar-play-in-the-making]
* CoreWeave Is Back With The Bulls (Rating Upgrade) [https://seekingalpha.com/article/4828401-coreweave-is-back-with-the-bulls-rating-upgrade]
* CoreWeave appoints Jon Jones as chief revenue officer [https://seekingalpha.com/news/4505025-coreweave-appoints-jon-jones-as-chief-revenue-officer]
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