Refile: Neuberger Berman joins objectors to Zendesk purchase of SurveyMonkey parent

Momentive Global

14/02/2022 18:08

(Adds dropped word 'announced' in paragraph 4)
    Feb 14 (Reuters) - Asset manager Neuberger Berman said on
Monday it remained unconvinced Zendesk  ZEN.N  should buy
Momentive Global  MNTV.O  for $4 billion even after engaging
with the software firm's management, joining prominent investors
who questioned the merits of the deal.
    Neuberger said it had concerns over valuation and potential
growth of the combined company and believes there is a
significant risk Momentive would dilute Zendesk's growth,
despite management assurances.
    "Overall, we struggle to understand the appropriateness of
this transaction given Zendesk's compelling and undervalued
standalone business. The Momentive deal does not appear to be an
attractive risk-reward alternative to the organic growth
pathway," it said https://www.nb.com/en/global/esg/nb-votes.
    Proxy advisory firms Institutional Shareholder Services and
Glass, Lewis & Co last week advised Zendesk investors to vote
against a planned takeover of the SurveyMonkey parent, while
activist investors Janus Henderson and Jana Partners have also
opposed the all-cash deal announced in October.
 urn:newsml:reuters.com:*:nL1N2UM13V urn:newsml:reuters.com:*:nL4N2TT42B    
    Neuberger added that a stand-alone Zendesk could command a
premium valuation on its own based on its organic growth
opportunities.
 
    
    

 (Reporting by Nishara Karuvalli Pathikkal in Bengaluru; Editing
by Krishna Chandra Eluri)
 ((Nishara.KaruvalliPathikkal@thomsonreuters.com; within U.S. +1
646 223 8780, outside U.S. +91 80 6182 2630;))