Twitter takeover moves a step closer as board urges investors to back Elon Musk’s £36bn offer
The £36billion takeover of Twitter by Elon Musk moved a step closer yesterday as the social media giant’s board recommended shareholders approve the deal.
The Tesla tycoon, the world’s richest man, launched his audacious $54.20 (£44.15) per share bid in April but the stock has languished well below the offer price for weeks amid fears the deal would collapse.
In a filing with the US Securities and Exchange Commission yesterday detailing a letter to investors, Twitter’s board of directors said that it ‘unanimously recommends that you vote (for) the adoption of the merger agreement’.
Elon Musk launched his audacious $54.20 per share bid for Twitter in April but the stock has languished well below the offer price for weeks amid fears the deal would collapse
Shares edged higher to around $38 (£31) – still some way off the offer price.
Musk, pictured, has in recent weeks threatened to pull out of the take-over in a move that would cost him $1billion – or £815million. But that is just a fraction of his £189billion fortune.
Despite the threats, he reiterated his desire to complete the acquisition last week in a virtual meeting with Twitter staff.
The approval by the social media firm’s board came as Musk, who is chief executive and founder of SpaceX as well as Tesla, said a 10 per cent cut to staff at the electric car maker will happen over the next three months amid fears of recession in the US.
Voicing concern about a recession, he said: ‘It’s not a certainty, but it appears more likely than not.’