Musk is on board as the fight for the takeover of Twitter unfolds: shares rise as Tesla CEO intensifies efforts to buy social media giant
Shares on Twitter rose last night as the struggle for the future of the social network intensified.
Shares of the technology giant jumped 5 percent to about $ 48 during after-hours trading as Tesla CEO Elon Musk stepped up efforts to buy the company.
Last week, Musk stunned Wall Street and Silicon Valley when he attacked a group on social media with a takeover offer of £ 31 billion.
The purpose of the takeover: Elon Musk (pictured) stunned Wall Street and Silicon Valley last week when he attacked a group on social media with a takeover bid of 31 billion pounds
The world’s richest man began his hostile bid after amassing more than 9 percent in the company.
The Twitter board responded to a $ 54.20 offer of the stock, and on Friday the company launched a serious defense.
But the 50-year-old Musk doubled last weekend by opening talks with potential co-investors who are believed to include the Silver Lake private equity group.
And yesterday he again targeted the company’s top team, using a tweet to say he would not pay board members a penny if his takeover was successful.
In response to another tweet discussing how Twitter board members receive up to £ 230,000 a year for part-time work, Musk said: “The board’s salary will be $ 0 if my application is successful.”
He added that reducing those payments could save the company around £ 2 million a year. The day before, he published a mysterious post on the site, which said: “Love Me Tender”.
While this could be a reference to an Elvis Presley song, analysts were quick to say it could mean Musk plans to launch a tender offer.
This will lead him to directly ask the shareholders if they want to sell him their shares at the offer price. The indication that he is considering a tender stems from a defense strategy developed by the council to thwart his efforts.
This protection, known as the “poison pill”, means that if the Tesla tycoon takes his share of Twitter more than 15 percent, he will fill the market with new shares – offering them to existing owners at a big discount.
This method, developed by law firms in the 1980s to protect companies from corporate raiders, would not allow Mask to buy a majority stake without the approval of the board of directors.
But Musk is reportedly considering teaming up with other contenders, each of whom could take shares worth just under 15 percent and gain overall control of Twitter.
Former SEC chairman Harvey Pete has slammed the Twitter board and said he would put it ‘F’ for how he handled the situation. He said: “I believe that in these circumstances they needed to check whether this was a real proposal.”
Musk is targeting a Twitter board as he intensifies his efforts to buy the company
Source link Musk is targeting a Twitter board as he intensifies his efforts to buy the company