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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 -1.60% /zigman2/quotes/207137761/composite SFTBY -2.58% , 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 -4.04% has declined 17.6%.

/zigman2/quotes/207303954/delayed
JP : Japan: Tokyo
¥ 5,055.00
-82.00 -1.60%
Volume: 22.69M
May 19, 2022 3:00p
P/E Ratio
4.58
Dividend Yield
0.00%
Market Cap
¥8777.14 billion
Rev. per Employee
¥181.04M
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/zigman2/quotes/207137761/composite
US : U.S.: OTC
$ 19.29
-0.51 -2.58%
Volume: 449,338
May 18, 2022 4:00p
P/E Ratio
3.72
Dividend Yield
0.69%
Market Cap
$67.90 billion
Rev. per Employee
$1.67M
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/zigman2/quotes/210599714/realtime
US : S&P US
3,923.68
-165.17 -4.04%
Volume: 2.71B
May 18, 2022 4:56p
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