Investment groups around the world are scrambling to seize a stake in Uber, the world’s largest passenger services company.
The move comes amid speculation on the company’s reasons to sell its shares, despite a market dominance and optimism over the financial future of Uber, which is expected to exceed $100 billion.
Three offers have been presented and are looking to acquire shares from existing shareholders instead of waiting for new options to be listed.
The most significant of these was the Softbank offer. The Japanese multinational is looking to buy a strategic stake that enables it to “gain the upper hand” in the company.
The New York Times reported recently that the Uber board of directors are currently studying the offer as well as a second offer from an alliance led by Iranian American investor Shervin Pishevar.
Pishevar plans to buy 75 percent of the shares owned by venture capital firm Benchmark, one of the largest investors in the “Uber”.
A third offer by San Francisco based Dragoneer Investment Group is also being studied by the board.
The timing of the offers comes at a critical point for UBER as Travis Kalanick, the company’s chief executive, resigned in June amidst controversy and sharp criticism from both board members and investors alike.
Real concerns are being raised for Uber in accepting a sale of shares at a price lower than the company’s valuation.
Despite the company’s leadership problems, it remains an attractive investment and is witnessing rapid growth in its global passenger services activities.
The board is split between opponents and supporters
Concerns have prompted Uber’s board members to split between supporters and opponents of the three proposed acquisitions.
While some current shareholders consider selling the shares as this may secure huge profits opponents believe that this step would deliberately damage the company.
Softbank currently tops the list of interested parties and serious discussions have taken place by Cheif executive Masayoshi Son.
Softbank’s $ 2.5 billion investment in car rental company Grab, with China’s Didi Chuxing, has angered the Uber board, who warned to end Softbank’s takeover offer.