FILE – Elon Musk leaves the Justice Center in Wilmington
Highlight
- Twitter shares remain well below Elon Musk’s offer price
- Musk listed the approval of the deal by shareholders as one of several “unresolved matters”.
- Twitter’s stock last hit that level on April 5 when it offered Musk a seat on the board
According to a regulatory filing on Tuesday, Twitter’s board has unanimously recommended that shareholders approve the company’s proposed $44 billion sale of the company to billionaire and Tesla CEO Elon Musk.
Musk reiterated his desire to move forward with the acquisition during a virtual meeting with Twitter employees last week, although Twitter’s shares are well below his offering price, indicating considerable doubt that it will happen.
At the Qatar Economic Forum on Tuesday in an interview with Bloomberg, Musk listed the approval of the deal by shareholders as one of several “unresolved matters” related to the Twitter deal.
Shares of Twitter Inc. were essentially flat just before the opening bell on Tuesday and far below the $54.20 per share that Musk offered to pay for each. The company’s stock last reached that level on April 5 when it offered Musk a seat on the board, before offering to buy all of Twitter.
In a filing with the US Securities and Exchange Commission on Tuesday detailing the litter to investors, Twitter’s board of directors said it “unanimously recommends that you vote to adopt the merger agreement.” If the deal closes now, investors in the company will make a profit of $15.22 for each of their shares.