Twitter Inc. is becoming more open to Elon Musk’s $43 Billion takeover offer. The two sides met for talks on what could be the largest ever internet acquisitions.
- Sunday, Billionaire met executives from social media giants.
- Twitter has adopted a poison pill to stop hostile manoeuvres
According to a source, Musk met with Twitter executives Sunday. This was a significant step after the Tesla Inc. chief disclosed a financing plan that included backing from Morgan Stanley and other institutions. The person asked not to be identified to discuss private information but said that Twitter was more open to discussions about a deal than previously.
Wall Street Journal reported that Musk met privately with shareholders on Friday to present his proposal. According to the Wall Street Journal, Musk told Bret Taylor, Twitter chairman, that he wouldn’t change his $54.20-per-share offer. According to the Journal, people familiar with the matter said that a deal could be concluded as early as this week.
Twitter’s spokesperson declined to comment.
Although Twitter stated it is open to discussing a deal with Musk, the board initially rejected Musk’s offer by creating a shareholder’s rights plan, also known as a “poison pill” that would make it more costly for investors to purchase stock above a 15% stake.
According to the WSJ, Musk pitched select shareholders Friday in a series of video calls. The focus was on actively managed funds. According to the newspaper, Twitter is still trying to estimate its own value.
Twitter shares have increased 6.7% since Musk’s April 14 bid. They trade at close to 10% below Musk’s offer price, which indicates that there is still doubt about the prospects of his acquisition bid.
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