As it stands, the market clearly doesn’t expect Musk to follow suit. Following Musk’s announcement on Friday that it would terminate the deal, the shares were quoted at a 35% discount to the offer price and have fallen even further since then.
“It would be naive to claim that there is no wisdom in this significant discount,” the Forager team admits.
But Forager’s international team, made up of Gareth Brown and Harvey Migotti, with Chloe Stokes leading the numbers, is confident that Musk’s claims that Twitter made “misleading representations” about the number of spam bots will fall.
However, the idea that the bid price could go down if a judge orders it or the Twitter board accepts an offer, makes Forager’s team angry.
“The biggest risk in recent months is that the council will give in to any demand from Musk for a lower price to quickly close the deal,” they say.