Twitter reexamines bid to acquire Musk 53 trillion won Attitude shift after Musk financing
Twitter is reported to be reconsidering Tesla CEO Elon Musk’s $43 billion buyout bid. Earlier, it seemed that they would reject the takeover offer by introducing a ‘poison feel’ (a means of defending management rights), but it is known that they have changed their stance on the disclosure of the acquisition financing plan.
According to the Wall Street Journal (WSJ) on April 24 (local time), Musk and Twitter once again discussed the takeover offer. The move suggests that Twitter may be positive about the takeover offer.
Twitter’s board vehemently opposed Musk’s takeover of Twitter before securing funding for the takeover. The company also announced that it would block the takeover of Twitter by introducing ‘poison feel’, one of the means of defending corporate management rights. But right after Musk came up with a way to finance the Twitter takeover, he’s shown a forward-looking attitude.
Earlier, Musk announced a plan to raise a total of $46.5 billion through debt financing and equity financing through a filing with the US Securities and Exchange Commission (SEC) on April 21. Afterwards, he met with a number of Twitter shareholders on the 22nd and put pressure on the company, such as actively promoting his proposal.
Twitter will officially announce its position on Musk’s offer to take over the company in the first quarter earnings release scheduled for the 28th. The industry forecast is that it will leave room for waiting for proposals from other bidders or drawing more favorable terms from Musk, rather than making a decision right away.
An industry insider said, “If the acquisition contract is broken, it may demand preferential conditions, such as having Musk pay a penalty.” On the other hand, when it comes to the acquisition price, Musk is said to be sticking with his stance that he will not step back from his proposed $54.2 per share.
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