Elon Musk is reportedly in talks with potential investors about bidding for Twitter and within a few days, a new plan with partners could be announced.
One possibility is partnering with Silver Lake Partners, a private equity firm that Musk was set to co-invest with in 2018, when he was considering taking Tesla private, according to people familiar with the matter. New York Post,
Aegon Durban, who is the co-CEO of Silver Lake, is a member of Twitter The board oversaw Musk’s negotiating team during a failed attempt to take Tesla private in 2018. Silver Lake did not respond to a request for comment.
it is unclear if Elon Musk Will there be an entirely new offering for Twitter, maybe a boost to its current offering, or whether the new partners will simply join in on a buyout with it?
poison pill
Meanwhile, on April 15, Twitter’s board of directors approved a defensive move in response to Musk’s aggressive takeover bid for $43 billion – the microblogging platform adopting a ‘poison pill’.
The ‘poison pill’, as the business is known, gives existing Twitter shareholders a time to buy more shares at a lower price, reducing Musk’s ownership interest. The move is aimed at making it difficult for anyone, including the billionaire, to own more than 15% stake in the company.
The ‘poison pill’ strategy was developed in the 1980s by the New York-based law firm Wachtel, Lipton, Rosen & Katz. The name stems from the poison pills that spies used to avoid questioning their enemy when caught.
It was created to prohibit a takeover business from buying a majority stake in a potential target or negotiating directly with shareholders at a time when takeovers were becoming increasingly widespread.
It is worth noting that there are two types of ‘poison pill’ strategies – flip-in and flip-over. Of the two options, the flip-in variety is more commonly followed.
However, Twitter has yet to submit its shareholder rights plan with the Securities and Exchange Commission, despite announcing a ‘poison pill’ in a statement.
The SEC filing will provide more details about whether it prohibits like-minded investors from pooling their money to buy more than 15% of the stake.
take charge
Earlier this month Musk revealed that he owns a 9.2% stake in Twitter. He then announced his appointment to the company’s board of directors and began making changes to the platform, including converting offices into homeless shelters.
Musk has stated several times that he believes Twitter fails to adhere to “free speech principles”, and has even recommended the creation of a competitive network where free speech And free speech is given a high priority.
Tesla’s CEO eventually exited the board of directors and offered to buy the company at $54.20 per share, although he did not specify how he intended to pay for it.
Meanwhile, Prince Alwaleed bin Talal, a Saudi businessman, said this week that as one of Twitter’s major shareholders, he had rejected the planned takeover deal. According to other reports, Thoma Bravo, a private equity group, said on Twitter that it is looking at making a competitive offering for the company.
However, on April 15, Twitter also said in a statement: “The Board of Directors has unanimously adopted a limited-term shareholder rights plan… Later adopted the Rights Scheme.”
“The Rights Plan will minimize the possibility that any entity, individual or group will be able to access Twitter through open market accumulation without paying a reasonable controlling premium to all shareholders or providing the Board with sufficient time to make an informed decision and take the best course of action. enjoys control over the interest of the shareholders,” the company said.
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