Elon Musk posted a cryptic tweet that was seen as an indication that he may be plotting a new approach to buying Twitter.
The social media company has launched a so-called “poison pill” to make it harder for Mr Musk or any group of investors to acquire a majority stake in the company.
It came after the world’s richest man filed a $43 billion proposal to buy Twitter and take it private. It was revealed last week that Mr Musk had acquired a 9.1% stake in Twitter and was the social media company’s second largest shareholder.
On Sunday, Mr Musk kept investors guessing when he tweeted “Love Me Tender”, sparking a flurry of online speculation.
Some commentators have suggested that the reference to the famous Elvis Presley song indicates that Mr Musk hopes to appeal directly to Twitter shareholders. Such a decision could allow him to bypass Twitter’s board of directors.
Earlier, Mr. Musk tweeted out a poll asking users if they agreed with the statement: “Twitter’s $54.20 privatization should be up to shareholders, not the board.”
In separate comments, the billionaire Tesla CEO criticized Twitter’s board, saying its interests are no longer aligned with those of shareholders.
He was responding to a tweet that pointed out that the board “collectively owns almost no shares” following the departure of founder Jack Dorsey.
Twitter’s share price was $45.08 before markets opened on Monday, well below Mr. Musk’s offer of $54.20 per share.
However, there remain substantial obstacles to any acquisition. The social media platform’s board rolled out a one-year “rights plan” on Friday, the day after it received an “unsolicited and non-binding proposal” from Mr Musk.
Under the plan, shareholders would have the option to buy Twitter shares at a discount if Mr. Musk increases his stake to more than 15% of the company.
That would dilute Mr. Musk’s stake, making a takeover more difficult.
“The rights plan is intended to allow all shareholders to realize the full value of their investment in Twitter,” the board said in a statement.
“The Rights Plan will reduce the likelihood that any entity, person or group will gain control of Twitter through open market accumulation without paying all shareholders an appropriate control premium or giving the board enough time to make informed judgments and take actions that are in the best interests of shareholders”.
While Mr. Musk’s surprise take on Twitter caught the attention of his massive online following, investors were alarmed by his apparent distraction from running Tesla. Shares of the electric car company have fallen 9.2% in recent days.
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This notice was published: 2022-04-18 14:37:52