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Investing.com -- Core Scientific (NASDAQ:CORZ) stock rose 7% late on Monday after proxy advisory firm Institutional Shareholder Services (ISS) recommended that the company’s investors reject the proposed acquisition bid from CoreWeave (NASDAQ:CRWV).
The recommendation from ISS comes despite the Core Scientific Board of Directors having unanimously determined that the proposed transaction with CoreWeave represents the best available alternative for all stockholders. The board has been recommending that all stockholders vote in favor of the transaction.
Last week, Two Seas Capital LP, a major shareholder of Core Scientific, issued a letter to fellow shareholders opposing the proposed sale. The investment firm cited market evidence suggesting that the transaction undervalues Core Scientific.
The conflicting recommendations have created uncertainty around the deal’s future, with ISS’s position potentially influencing institutional investors who rely on proxy advisory services for voting guidance.
Core Scientific, a blockchain infrastructure provider and digital asset miner, has seen its shares respond positively to the ISS recommendation, suggesting some investors may agree that the company could command a higher valuation than what CoreWeave has offered.