Investor group calls on Lyft to scrap dual-class share structure plan -FT
March 16 (Reuters) - A group of investors has called on Lyft
Inc's board to scrap a proposed dual-class share
structure, as the ride hailing company pitches its initial
public offering to investors next week, the Financial Times
reported on Saturday.
San Francisco-based Lyft's planned IPO includes a dual-class
stock structure, with one class of shareholders getting 20 votes
per share and another getting one vote per share.
The investor group, in a letter addressed to the company's
directors, said it should stick with its single class of shares
with one vote each, the report said.
If the company's board fails to resolve the issue, it should
adopt a “sunset” provision to phase out the extra voting rights
within seven years, the letter said, according to the newspaper.
The letter was signed by investors from Britain's Local
Authority Pension Fund Forum, BNP Paribas Asset Management,
pension funds representing public employees in New York, Los
Angeles, Chicago and Ohio, the Teamsters union and United Auto
Workers union retirees, the newspaper said.
Lyft did not immediately respond to a Reuters request for
"With a dual-class structure, Lyft is basically shielding
itself and company insiders against shareholders who deserve a
voice. Outsized control among an unaccountable few is an
unnecessary risk — and Lyft should go back to the drawing
board," New York City Comptroller Scott Stringer said, according
to the Financial Times. Stringer oversees the city's pension
(Reporting by Akshay Balan in Bengaluru
Editing by Bill Berkrot)
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