Core Scientific holders expected to reject CoreWeave deal - report

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Core Scientific (NASDAQ:CORZ [https://seekingalpha.com/symbol/CORZ]) shareholders are expected to reject CoreWeave's (NASDAQ:CRWV [https://seekingalpha.com/symbol/CRWV]) acquisition when they vote later this month. Shares of Core Scientific rose 5.5%, while CoreWeave gained 3%.

Core Scientific (NASDAQ:CORZ [https://seekingalpha.com/symbol/CORZ]) holders will vote down the $9 billion acquisition at a shareholder vote on Oct. 30, according to CNBC's David Faber, who cited large holders of the stock as well as activist investors.

The comments come after CoreWeave CEO Michael Intrator said on Tuesday that there's no plan to readdress the Core Scientific (NASDAQ:CORZ [https://seekingalpha.com/symbol/CORZ#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]) bid even as some shareholders have come out against the deal.

“Really under no circumstances will we readdress the bid that we put out,” CoreWeave CEO Intrator said in an interview on Bloomberg Television. “That’s the number. We think it fairly represents the value for them. We think it will be great for the two companies to move forward together.”

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. Many top shareholders and hedge funds are debating whether to reject the deal altogether, aiming to force improved terms or even to scuttle the transaction if their expectations are not met.

MORE ON CORE SCIENTIFIC, COREWEAVE

* CoreWeave Is Back With The Bulls (Rating Upgrade) [https://seekingalpha.com/article/4828401-coreweave-is-back-with-the-bulls-rating-upgrade]
* CoreWeave: Taking Chips Off The Table [https://seekingalpha.com/article/4828133-coreweave-taking-chips-off-the-table]
* CoreWeave: Bears Are Wrong - This Is Not A Circular Economy, Reiterate Strong Buy [https://seekingalpha.com/article/4827643-coreweave-stock-bears-wrong-this-not-circular-economy]
* CoreWeave unveils serverless reinforcement learning capability to build AI agents; stock rises [https://seekingalpha.com/news/4502754-coreweave-unveils-serverless-reinforcement-learning-capability-to-build-ai-agents-stock-rises]
* CoreWeave CEO says there's no plan to readdress Core Scientific bid [https://seekingalpha.com/news/4502430-coreweave-ceo-says-theres-no-plan-to-readdress-core-scientific-bid]