Core Scientific (CORZ) Holders Poised to Reject CoreWeave (CRWV) Merger, Jefferies Says
Jefferies predicts Core Scientific shareholders will reject the CoreWeave merger due to undervaluation concerns ahead of the October 30 vote.Summary
Investment bank Jefferies believes Core Scientific (CORZ) shareholders are likely to vote down the proposed merger with CoreWeave (CRWV) on October 30, as CORZ shares are trading about 18% above the implied offer price, suggesting investors feel the deal undervalues Core Scientific. Proxy advisor ISS and major shareholder Two Seas Capital have also urged rejection based on valuation and structural issues. Jefferies argues that even if the merger fails, Core Scientific is well-positioned to create value independently by leasing its 305 MW of billable IT load or pursuing a REIT model, leading the bank to raise its price target to $24. However, a failed vote could complicate future relationships with CoreWeave, though ongoing GPU demand might bring them back to negotiations.
(Source：CoinDesk)