“You will be asked to consider and vote on a proposal to adopt the Agreement and Plan of Merger dated April 25, 2022 (…) You will also be asked to consider and vote on a proposal to approve the compensation that Twitter will or may pay its designated executive officers in connection with the merger“, detailed the company in the letter.
The technology is at a time of cost reduction for which it has significantly reduced hiring during the last quarter, something that its executive director, Parag Agrawal, already warned of last May.
If the Delaware court ultimately rules in favor of the purchase under the initial terms, investors will receive $54.20 in cash per share. The company has indicated that the majority of shareholders agree with the operation.
As agreed by the parties, the billionaire businessman would pay $54.20 for each Twitter share, which represented a 54% premium over January 28, when Musk started buying Twitter shares, and 38 % from the closing price on April 1, the last trading day before Musk announced he bought 9.2% of the social network for $2.9bn.
Twitter’s board of directors urged its shareholders in the middle of this month to give the green light to the operation, explaining that it would be the last step to close it, although it also cited that this depends on “pending litigation.”
The legal battle began earlier this month, when Musk announced to Twitter that he was giving up the purchase, arguing that the social network had not provided him with accurate information about the number of fake accounts and bots on the platforms. On July 13, Twitter responded by suing Musk in Delaware Court to force him to honor the original purchase agreement, accusing the tycoon of “criticizing the company, disrupting its operations, and destroying shareholder value.”
After Twitter asked to speed up the trial to end the conflict with Elon Musk, the trial will take place next October.
Source: Ambito
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