• Advertisement
To advertise, place classifieds free ads by category in a forum as a new topic, or in the classified display ads section, or start a classifieds free blog.

SolarCity recuses two more board members from voting on Tesla offer

SolarCity recuses two more board members from voting on Tesla offer

Postby smix » Sun Jun 26, 2016 1:08 pm

SolarCity recuses two more board members from voting on Tesla offer
Reuters

URL: http://www.reuters.com/article/us-solar ... SKCN0ZB0V1
Category: technologyNews
Published: Sat, 25 Jun 2016 14:51:22 -0400

Description: (Reuters) - Two additional SolarCity Corp board members with ties to Elon Musk are recusing themselves from making decisions regarding Tesla Motors Inc's offer to buy the solar power company, in a bid to alleviate corporate governance concerns surrounding a potential deal. The new recusals mean the majority of SolarCity's board will be sitting out the decision on whether to be acquired by Tesla. Peter Rive, who is the cousin of Tesla chief executive and SolarCity chairman Musk, along with JB Straubel, chief technology officer and co-founder of Tesla, are both recusing themselves from the decision-making process, SolarCity spokesman Jonathan Bass said in a statement emailed to Reuters late on Friday. Musk, the largest shareholder in both companies, recused himself earlier from voting on the potential deal, along with Antonio Gracias who sits on both companies' boards, and SolarCity Chief Executive Lyndon Rive, who is Musk's cousin as well as Peter Rive's brother. There are three remaining SolarCity board members: John Fisher and Nancy Pfund, both venture capitalists and Donald Kendall Jr., CEO of Kenmont, an investment management firm. "We're very mindful of the need to have a process that ensures independent, objective decisions that are in the best interest of all shareholders," SolarCity's Bass said in the statement. Tesla did not immediately respond to a request for comment. SolarCity will form a special independent committee of the board, which will have independent counsel, Bass said. "Only board members who meet the requirements for independence will be involved in the decision-making process at SolarCity," he added. Musk has described a tie-up between Tesla and SolarCity as a "no brainer." The company could sell customers an electric car, a home battery and a solar system all at once, he said. But investors, including some who short the stocks, betting that shares will fall, point to the conflict of interest and the risk of uniting two money-losing companies which both regularly raise cash to support expansion. Since Tesla announced its offer to buy SolarCity in a deal worth $2.8 billion last Tuesday, analysts and investors have been concerned that the electric car firm's growth plan carries a financial burden and additional debt it cannot afford. SolarCity shares have fallen more than 50 percent this year in a highly competitive market, fanning criticism that a Tesla deal was meant to save SolarCity.
User avatar
smix
 
Posts: 1799466
Images: 1
Joined: Sat Aug 10, 2013 8:05 am
Blog: View Blog (0)

  • Similar Topics
    Replies
    Views
    Last post

Return to Green Technology


Mobile Device
  • 1
  • FREE CLASSIFIED ADS
    Free Classified Ads
    There are 3 ways to advertise - your choice: you can place free ads in a forum topic, in the classified display ads section, or you may start your own free blog. Please select the appropriate category and forum for the ad content before you post. Do not spam.
    Caveat emptor - let the buyer beware. Deal at your own risk and peril.
  • Advertisement