Two Seas Capital to launch proxy fight over Core Scientific: FT

Two Seas Capital to launch proxy fight over Core Scientific: FT

Two Seas Capital has announced plans to launch a proxy fight over Core Scientific, threatening the proposed $9 billion acquisition by CoreWeave. The Financial Times reported that some major shareholders of Core Scientific plan to vote against the deal unless the terms are revised in the coming weeks. This development highlights the potential hurdles in the acquisition process and the ongoing debate over the valuation of Core Scientific.

The all-stock deal, valued at approximately $9 billion, was announced last month. CoreWeave, which provides access to data centers and Nvidia-powered AI chips, initially submitted an unsolicited, non-binding takeover offer to Core Scientific in June 2024. However, Core Scientific rejected the offer, citing that its business was significantly undervalued [1].

The proxy fight, led by Two Seas Capital, is expected to take place sometime this autumn. The shareholders argue that the terms of the acquisition may leave them short-changed. This move underscores the delicate balance between the interests of shareholders and the strategic objectives of the acquiring company.

The acquisition is part of the broader trend among AI infrastructure firms to secure the energy and data center capacity required to meet surging demand. CoreWeave's acquisition bid for Core Scientific aims to bolster its position in this competitive landscape. However, the shareholder revolt highlights the complexities and potential risks associated with such large-scale mergers and acquisitions.

Reuters could not immediately verify the report. CoreWeave and Core Scientific did not immediately respond to Reuters' request for a comment outside regular business hours. The outcome of the proxy fight will likely have significant implications for both companies and the broader AI infrastructure market.

References:
[1] https://economictimes.indiatimes.com/tech/technology/core-scientifics-shareholders-balk-at-terms-of-coreweave-merger-offer-ft/articleshow/123109688.cms?from=mdr