TaskUs drops as it terminates take-private after shareholder vote fails

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TaskUs (NASDAQ:TASK [https://seekingalpha.com/symbol/TASK]) plunged 12% after it terminated its planned sale to Blackstone (BX [https://seekingalpha.com/symbol/BX]) after failing to get enough shareholder votes at a meeting earlier today.

TaskUs doesn't plan to convene another special meeting and expects to terminate the deal, according to a statement [https://seekingalpha.com/pr/20259605-taskus-inc-announces-results-of-special-meeting-of-stockholders-and-expects-to-terminate] on Wednesday. TaskUS will remain a publicly traded company.

The termination comes as the shareholder vote had been adjourned a few times in order to gain enough shareholder support for a deal. Proxy adviser ISS had said [https://seekingalpha.com/news/4490479-taskus-holders-should-reject-blackstone-takeover-offer-iss-says-report#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]holders should reject the offer and some investors had said they plan to reject t [https://tinyurl.com/4k3nmp3t]he offer at its price of 16.50 a share.

Blackstone (NYSE:BX [https://seekingalpha.com/symbol/BX#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]), TaskUs (NASDAQ:TASK [https://seekingalpha.com/symbol/TASK#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]) Chief Executive Officer Bryce Maddock, and President Jaspar Weir agreed in May to take private [https://seekingalpha.com/news/4445732-taskus-to-go-private-in-deal-led-by-co-founders-and-blackstone#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] the digital services provider in an all-cash transaction for $16.50 a share.

MORE ON TASKUS

* TaskUS shareholder vote on take-private adjourned until Oct. 8 [https://seekingalpha.com/news/4498362-taskus-board-vote-on-take-private-adjourned-until-oct-8]
* TaskUS shareholder vote on take-private adjourned until Sept. 24 [https://seekingalpha.com/news/4493698-taskus-shareholder-vote-on-take-private-adjourned-until-sept-24]
* Seeking Alpha’s Quant Rating on TaskUs [https://seekingalpha.com/symbol/TASK/ratings/quant-ratings]
* Historical earnings data for TaskUs [https://seekingalpha.com/symbol/TASK/earnings]
* Financial information for TaskUs [https://seekingalpha.com/symbol/TASK/income-statement]