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April 7, 2020, 8:37 a.m. EDT

WeWork sues Softbank alleging canceling of $3 billion stock tender offer was 'wrongful'

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By Tomi Kilgore

WeWork parent The We Co. said Tuesday it has filed a lawsuit against SoftBank Group Corp. /zigman2/quotes/207303954/delayed JP:9984 +1.09% /zigman2/quotes/207137761/composite SFTBY -1.29% , alleging SoftBank breached obligations when it failed to complete the tender offer for $3 billion worth of WeWork shares. "SoftBank's failure to consummate the tender offer is a clear breach of its contractual obligations under the [Master Transaction Agreement] as well as a breach of SoftBank's fiduciary obligations to WeWork's minority stockholders, including hundreds of current and former employees," a special committee of We Co.'s board of directors said in a statement. On April 2, Softbank said it "ended" its $3 billion tender offer " because certain conditions to the tender offer were not satisfied ." Softbank said at that time that it would continue to help bail out the office-space rental company. WeWork said it's looking for Softbank to either complete the tender or pay "compensatory damages" for breach of contract and fiduciary duty. Softbank's U.S.-listed shares have lost 13.7% year to date, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.36% has declined 17.6%.

/zigman2/quotes/207303954/delayed
JP : Japan: Tokyo
¥ 5,177.00
+56.00 +1.09%
Volume: 24.53M
June 4, 2020 2:21p
P/E Ratio
34.73
Dividend Yield
0.85%
Market Cap
¥10590.20 billion
Rev. per Employee
¥126.96M
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/zigman2/quotes/207137761/composite
US : U.S.: OTC
$ 23.73
-0.31 -1.29%
Volume: 465,669
June 3, 2020 3:59p
P/E Ratio
36.95
Dividend Yield
0.44%
Market Cap
$99.43 billion
Rev. per Employee
$1.15M
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/zigman2/quotes/210599714/realtime
US : S&P US
3,122.87
+42.05 +1.36%
Volume: 3.16B
June 3, 2020 5:18p
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