NEW YORK, Aug 28 (Reuters) - Institutional Shareholder

Services on Thursday urged TaskUs ( TASK ) investors to reject a

plan proposed by investment firm Blackstone and TaskUs' ( TASK )

co-founders to take the outsourcing company that handles content

moderation private.

"There does not appear to be a compelling reason to accept

the terms," the influential proxy advisory firm wrote in its

recommendation that was seen by Reuters. Shareholders are

scheduled to vote on September 10.

ISS argues the offer made by Blackstone and Bryce Maddock

and Jaspar Weir in May to pay $16.50 a share to take the company

private "may have represented a premium at announcement, but it

appears that the unaffected price is not the most appropriate

reference point for value at this stage." The stock closed at

$17.40 on Thursday.

ISS noted that two major shareholders, Murchinson and Think

Investments, have already expressed public opposition to the

deal, arguing the offer is below fair value.

TaskUs ( TASK ) needs the majority of its minority shareholders to

vote in favor of the deal for it to be approved.

The New Braunfels, Texas-headquartered company offers

content moderation, customer experience, artificial intelligence

for companies including DoorDash ( DASH ), Meta and

Uber ( UBER ) and has a market value of roughly $1.6 billion. It

was not immediately available for comment.

ISS recommendations on proposed mergers or other

transactions and proxy fights are widely followed and often help

influence how investors cast their votes.

The ISS report said that any potential revision in deal

terms would "need to narrow the gap in order to adequately

compensate unaffiliated shareholders."