Latest News by Industry
The board move came following apparent shareholder pressure after
Twitter management earlier tried to fend off Musk’s hostile takeover bid. It
was reported that the management even considered making it too costly for a hostile
bidder to succeed to fend off the Tesla (NASDAQ: TSLA) owner.
Musk plans to tap his own resources and US lender MorganStanley as well as other financial institutions, earlier reports said.
A Twitter spokesperson chose not to comment on the reports.
Details of how Musk intended to fund his offer that were
placed before US regulators on Thursday, forced Twitter's 11-member board to consider
a deal, Reuters, the New York Times and Bloomberg reported citing anonymous
sources. Several Twitter shareholders reportedly urged the company not to miss the opportunity for a deal.
Musk owns a 9% stake in Twitter and has lined up a $46.5-billion
financing package, according to a regulatory filing.
Investors will view the discussions "as the
beginning of the end for Twitter as a public company, with Musk likely now on apath to acquire the company unless a second bidder comes into the mix,"
Reuters reported Dan Ives, an analyst at investment firm Wedbush Securities, as
saying.
Earlier this month, Musk refused to take a seat on Twitter's
board, that would have limited his ownership of shares. He then made an
unsolicited offer for the company on April 14, Reuters says.
Image source: Esquire