Prominent shareholder Jana Partners has launched a stinging attack on the Zendesk c-suite as the fallout of its failed $4.1BN acquisition of Momentive Global continues.
The latest development in the ongoing public feud comes after Zendesk CEO Mikkel Svane posted the following tweet, seemingly referencing the failed deal.
Cornelius Tacitus was the original VC during ancient Rome. “The desire for safety stands against every great and noble enterprise”. Replace safety with portfolio return at your discretion.
— Mikkel Svane (@mikkelsvane) February 23, 2022
Indeed, Svane appears to suggest that shareholders are holding Zendesk back, a sentiment that did not sit well with Barry Rosenstein, Managing Partner at Jana Partners.
In a new letter to the Zendesk Board of Directors, Rosenstein again takes aim at the Momentive deal, calling it "ill-conceived" and "value-destructive". Meanwhile, he also criticizes the c-suite for failing to communicate clearly with shareholders. He stated:
JANA Partners calls on Zendesk’s Board to put an end to its transparent and costly entrenchment tactics and immediately schedule a date for its 2022 annual meeting.
While other shareholders have remained quieter since the collapse of the Momentive acquisition, many were vocal beforehand. The Institutional Shareholder Services (ISS) - a well-respected advisory firm, even noted that the deal had "the potential to become that rarest of special situations, a merger that is disliked by shareholders of both the seller and the buyer."