Jana aims to block Zendesk deal

Article Excerpt

ZENDESK INC. $98 is a hold. The company (New York symbol ZEN; Manufacturing & Industry sector; Shares outstanding: 120.9 million; Market cap: $11.8 billion; No dividend paid; Takeover Target Rating: Medium; www.godaddy.com) makes cloud-based software that helps businesses manage their customer relationships. Zendesk recently agreed to acquire Momentive Global Inc. (Nasdaq symbol MNTV) in an all-stock transaction worth $4.1 billion. Momentive is best known as the developer of the popular SurveyMonkey online customer feedback platform. The company’s stock fell 15% on the announcement of concerns that it may be paying too much for Momentive. Activist firm Jana Partners now wants Zendesk to cancel the deal. The activist owns an undisclosed but “significant” stake in Zendesk, which may be enough to block the takeover at a special meeting on February 25, 2022. Investors can expect the stock to remain in a narrow range until that vote. Zendesk is a hold. hold…