Musk’s offer of $54.20 a share is expected to be deemed too low by Twitter’s board of directors by the time quarterly results are released on Thursday. However, some shareholders who agree with that stance still want Twitter to seek a better offer from Musk, whose net worth is estimated by Forbes at $270 billion, the sources told Reuters.
One option available to the board is to open its books to Musk to try to convince him to better his offer. Another option would be to solicit bids from other potential bidders. Although it is not yet clear which way Twitter will go, it is increasingly likely that its board will try to ask Musk for a better offer even if he rejects the current one, the sources said.
“I wouldn’t be surprised to wake up next week and see Musk raising what he called his best and last offer to possibly $64.20 a share,” one of the fund managers who has invested said on Twitter. “I might as well drop the whole thing entirely. Anything is possible.”
Twitter shares closed at $48.93 on Friday, a significant discount to Musk’s offer, reflecting uncertainty about the fate of his offer.
Twitter adopted a “poison pill after Musk made his offer to prevent him from increasing his 9%+ stake in the company above 15% without negotiating a deal with his board. In response, Musk threatened to launch a takeover bid ( takeover) that you could use to record Twitter shareholder support for your offer.
One concern Twitter’s board is weighing is that unless it tries to negotiate a deal with Musk, many shareholders might back him in a takeover bid, the sources said.
Although the poison pill would prevent shareholders from offering their papers, the company is concerned that its negotiating hand will weaken if it is shown to go against the will of many of its investors, the sources added.
Musk, the chief executive of electric car maker Tesla Inc, has been meeting with Twitter shareholders since unveiling his offer on April 14, seeking support for his bid. Musk has said that Twitter needs to be private in order to grow and become a true free speech platform.
Representatives for Twitter and Musk did not immediately respond to requests for comment.
The Wall Street Journal reported earlier on Sunday about some of Musk’s meetings with shareholders. The newspaper also said that Musk and Twitter would hold a meeting on Sunday to discuss the takeover offer.
Source: Ambito
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