Twitter is under increasing pressure from its stakeholders not to let Elon Musk’s multibillion-dollar proposal slip away.
This is despite the fact the business and Musk were scheduled to meet on Sunday to discuss his offer.
The announcement comes as Musk previously declared he will not raise his bid above $54.20 per share; he just reported that he secured $46.5 billion in financing to acquire the business.
— Bloomberg (@business) April 25, 2022
“A risk that Twitter’s board is considering is, without an agreement with Musk, many shareholders may support him in a tender bid,” Reuters said.
“While the poison pill would prohibit Twitter stockholders from tendering their shares, the firm is concerned its bargaining position would deteriorate significantly if it were seen to be acting against the wishes of a sizable portion of its investors.”
The firm revised its position on Musk’s offer, following Musk’s disclosure last week in a Securities and Exchange Commission (SEC) filing that he had the funds to back up his offer.
The Wall Street Journal said on Sunday, “Twitter was widely anticipated to reject Mr. Musk’s offer, which he made earlier in the month without specifying how he intended to pay for it.”
However, after announcing last week that he now possesses $46.5 billion in funding, Twitter reevaluates the offer and is more inclined than ever to bargain.
According to Reuters, the corporation may attempt to convince Musk to accept a higher bargain by requesting offers from other possible purchasers or showing him the company’s books.
Anything is Possible
A fund manager investing in Twitter told Reuters, “I wouldn’t be shocked if Musk raised his so-called best and last offer to maybe $64.20 per share next week.”
“He might abandon the project. Whatever is possible is possible.”
I hope that even my worst critics remain on Twitter, because that is what free speech means
— Elon Musk (@elonmusk) April 25, 2022
Musk disclosed in a recent SEC filing that he obtained $46.5 billion in financing to acquire the firm, including $13 billion from Morgan Stanley, $12.5 billion from other institutions, and $21 billion from himself.
“If our Twitter bid is successful, we shall battle spambots or perish in the attempt!” Musk tweeted shortly after the SEC filing was made public. “We will verify the existence of all genuine humans.”
Musk is still reportedly thinking about making a direct offer to shareholders to buy the company, which could happen as soon as this week.
According to the Securities and Exchange Commission (SEC), a “tender offer” is “usually an aggressive and widespread solicitation of a large percentage of a business’ securities by a corporation or third party (commonly referred to as the ‘bidder’ or ‘offeror’).
A tender offer is only open for a limited time and is extended to all stockholders in the company. The amount offered to acquire the shares is set and is typically higher than the stock’s market value.