Uber Technologies Inc.'s major shareholders are threatening to keep their rights to first refusal and block the company's US$10 billion investment deal with SoftBank Group Corp., four people close to the talks told the Financial Times (London).
Benchmark, along with other major shareholders of the U.S.-based ride-hailing giant, have refused to waive their rights of first refusal to an upcoming tender offer, which according to four people close to the talks has annoyed and confused the buyers involved in the deal, the report said.
Major Uber shareholders — those that hold over 2 million shares in the company — comprise over 30 investors, all of which have a right of first refusal over fresh investment deals.
Sources close to the talks reportedly said that some of these major shareholders prefer to see the price first before deciding on whether to buy or sell.
The deal will reportedly set into motion a series of governance changes upon closing, such as the removal of super-voting shareholder rights and the expansion of the Uber board to 17 seats.