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Zendesk Wins ISS Support for Takeover by Hellman, Permira

A prominent shareholder advisory firm has come out in support of Zendesk Inc.’s takeover by a group of buyout firms, arguing an alternative proposal by Light Street Capital Management last month to keep the company independent lacked sufficient detail. 

Institutional Shareholder Services Inc. noted in a report Tuesday that the current proposal represents a “significant discount to historical trading levels.” But ISS argued that while it may be frustrating to shareholders who resoundingly rejected Zendesk’s attempt to acquire Momentive Global Inc. earlier this year “only to see the company subsequently sold at a low point in its valuation,” it still remains the better option.