Uber board mulls 3 offers to buy co's shares

SAN FRANCISCO: Uber's board has voted to move forward on proposals by two investment groups to buy shares in the ride-hailing service and is considering a third offer, with any final decision set to affect who gains the upper hand at the company. Over the last week, the privately-held company's board voted to take the next step on investment interest from SoftBank.It is still considering an offer from a consortium led by Shervin Pishevar, an early investor in the company, to buy Uber shares from an existing investor. The board also earlier voted to go forward with a proposal from a coalition led by the Dragoneer Investment Group to buy stock from Uber's existing shareholders.
The three proposals were described by four people close to the process, who spoke on the condition of anonymity.
The offers - which are mostly focused on buying Uber stock from current shareholders, rather than issuing new shares - are preliminary. At this stage, the investment groups will begin a due diligence process that could eventually lead to formal investment terms.
The offers have emerged at a delicate time for Uber, which currently has no CEO and is dealing with board and investor infighting. Travis Kalanick, Uber's co-founder and CEO, stepped down in June under pressure from investors. Since then, various factions of investors, board members and Kalanick have all battled to advance their own interests at the company.
Yet even as Uber undergoes leadership troubles, the company - which is largely funded by venture capital and private equity firms - remains an attractive investment because it is the world's biggest ride-hailing service and is growing fast.
Uber itself does not need new money; the company has raised more than $10 billion in debt and equity and has some $5 billion in the bank.
But the board considered the proposals for a variety of reasons. For some of Uber's existing shareholders, selling stock now could help lock in a hefty profit at a time when the company's future is unclear. One of the proposals could also lead to the ouster of one investor whose firm - Benchmark - has an Uber board seat and that some other board members believe is deliberately damaging the company.