Twitter’s board has unanimously recommended that shareholders approve the company’s $ 44 billion (more than $ 63 billion) sale proposal to billionaire Tesla CEO Elon Musk.
Key points:
- Musk reiterated his desire to move forward with the acquisition last week
- However, Twitter shares remain well below their bid price, which indicates considerable doubt that this will happen.
- If the deal is closed now, investors would pocket a profit of $ 15.22 for each share they own.
The announcement was made on Tuesday in a regulatory filing with the U.S. Securities and Exchange Commission.
Musk reiterated his desire to move forward with the acquisition last week during a virtual meeting with Twitter employees, although Twitter shares remain well below their bid price, indicating a doubt. considerable that this happens.
At an interview with Bloomberg at the Qatar Economic Forum on Tuesday, Musk listed shareholder approval of the deal as one of several “unresolved issues” related to the Twitter deal.
Twitter shares were essentially flat just before the opening bell on Tuesday and well below the $ 54.20 per share that Mr. Musk has offered to pay for each.
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The company’s shares last reached that level on April 5 when it offered Mr. Musk a seat on the board before he had offered to buy all of Twitter.
In a presentation to the U.S. Securities and Exchange Commission on Tuesday detailing a letter to investors, Twitter’s board of directors said it “unanimously recommends that you vote [for] the adoption of the merger agreement “.
If the deal is closed now, the company’s investors would make a profit of $ 15.22 for each share they own.
AP