Why Are Zendesk Shares Trading Higher When Major Indexes Are Down?

Why Are Zendesk Shares Trading Higher When Major Indexes Are Down?
  • Significant Zendesk Inc ZEN stakeholder Jana Partners have urged the software solutions provider to abandon its deal to acquire SurveyMonkey parent Momentive Global Inc MNTVthe Wall Street Journal reports
  • Jana urged Zendesk's board to terminate the acquisition now rather than wait months for a shareholder vote that appears likely to fail. 
  • The Momentive deal "lacks financial merit, has questionable strategic logic, and introduces a high degree of execution risk for Zendesk shareholders," Jana said.
  • The activist added that it plans to vote its shares against the issuance of Zendesk stock required to pay for the deal and could seek to replace board members. 
  • Related Content: Zendesk Agrees To Acquire Momentive Global At 14% Premium
  • Price Action: ZEN shares traded higher by 6.74% at $101.52 on the last check Tuesday.

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