Neuberger Berman joins objectors to Zendesk purchase of SurveyMonkey parent

(Reuters) - Asset manager Neuberger Berman said on Monday it remained unconvinced Zendesk should buy Momentive Global 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-stock deal announced in October.

Neuberger added that a stand-alone Zendesk could command a premium valuation on its own based on its organic growth opportunities.

(Corrects paragraph 4 to say deal announced in October was "all-stock", not "all-cash")

(Reporting by Nishara Karuvalli Pathikkal in Bengaluru; Editing by Krishna Chandra Eluri)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Floods in Bangladesh kill 44, leave over a million stranded
• Teen Venezuela quake survivor mourns her 'young forever' friends
• One killed in drone attack on vessels in Taganrog Bay, Russian authorities say