Tesla-SolarCity Deal 'veiled Bail-out,' Glass Lewis Says

Shareholder proxy advisory firm Glass Lewis & Co. on Friday came out against the proposed $2.6 billion merger between Tesla Motors Inc. and SolarCity Corp. , saying the deal is a "thinly veiled bail-out plan." The group cited a "rather uncomfortable relationship between SolarCity's near-crippled financial position and (Tesla CEO Elon) Musk's personal interest -- both direct and indirect -- in preventing the rather pronounced, public collapse of an affiliate enterprise." Proxy service firm ISS had endorsed the deal earlier Friday. Shares of SolarCity and Tesla shed some of their gains in the late part of the session to close up 8.8% and 1.7%, respectively.