SoftBank $8bn WeWork takeover 'would lead to co-founder Neumann's exit'

The owner of struggling WeWork is to consider rival bailout proposals on Tuesday, including a takeover offer that would see its founder head for the exit.

There are reported to be two proposals on the table as the US office space sharing start-up faces a race against time to secure new financing.

According to sources cited by Reuters, WeWork could run out of cash by next month after it abandoned flotation plans last month amid investor concerns over financial losses and the firm's fast expansion .

The news agency reported that Japan's SoftBank Group, which acquired UK firm ARM Holdings for £24bn in 2016, had slashed an earlier valuation substantially to pitch a deal worth $8bn (£6.2bn).

The terms would include SoftBank and its Vision Fund, which already owns about a third of the company, taking a majority stake through the purchase of stock from existing investors and offering $5bn in new money in the form of debt.

It is understood, Reuters said, that chairman and co-founder Adam Neumann - who quit as chief executive amid stiff criticism after the failed Initial Public Offering (IPO) - could be relegated to the role of an adviser under the offer.

Wall Street banking giant JPMorgan Chase is said to be the other party to have put forward an alternative rescue plan.

WeWork, SoftBank and JPMorgan declined to comment.