SpaceX proprietor and Tesla CEO Elon Musk supplied to purchase Twitter for $43 billion.
Hannibal Hanschke/REUTERS
An ambiguous reference to an Elvis Presley track launched in 1956 may supply a touch on the subsequent stage of Elon Musk’s effort to purchase Twitter.
Musk sparked renewed hypothesis about his plans when he tweeted “Love Me Tender” on Saturday. The tweet got here hours after Twitter’s board enacted a “poison capsule” provision aimed toward limiting Musk’s skill to accumulate a bigger stake within the firm.
In one other tweet, Musk posted an upside-down smiley face emoji whereas resurfacing a 2017 thread wherein he requested how a lot it would price to purchase Twitter outright.
Whereas Musk offered no additional particulars within the posts, the throwback Elvis reference is a possible sign that the billionaire is contemplating a hostile bid to bypass Twitter’s board and make a direct supply to firm shareholders.
With a so-called tender supply, a potential purchaser pursues a takeover by publicly asking shareholders to promote their inventory at a selected worth.
The poison capsule provision – a defensive tactic incessantly employed throughout takeover battles – would flood the market with discounted Twitter shares if Musk acquired greater than 15% of the corporate. Musk at present owns an roughly 9% stake.
Musk has demanded that Twitter’s board permit shareholders to resolve whether or not to simply accept his supply – a possible precursor to a proper tender supply for management of the corporate.
“It could be completely indefensible to not put this supply to a shareholder vote. They personal the corporate, not the board of administrators,” Musk tweeted final week, hours after his supply went public.
Twitter’s board has but to make a closing resolution on Musk’s preliminary supply to purchase the corporate for roughly $43 billion. However Musk rejected a seat on the corporate’s board after clashing with present administration about Twitter’s future path.
Throughout an look at a TED Discuss convention in Vancouver final week, Musk stated he has a “plan B” to make use of if Twitter rejects his supply, although he has but to disclose the alternate path.
Musk would doubtless have to companion to fund a young supply, which is usually proposed at a premium to an organization’s present inventory worth. Twitter shares hovered close to $45 earlier than the opening bell Monday.
And Musk already faces competitors from different companies serious about buying Twitter. As The Submit reported, non-public fairness big Thoma Bravo is engaged on a potential bid for the corporate.
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