Twitter is planning a shareholder vote on Elon Musk’s deal

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SAN FRANCISCO — Twitter is struggling to close a deal with billionaire Elon Musk, even as the world’s richest man wants to pull the plug.

The social media company announced on Tuesday that on September 13 will hold a shareholder vote on the deal. In a document filed with the Securities and Exchange Commission, the company recommended that shareholders vote to approve the deal.

But the takeover faces significant uncertainty as Musk filed earlier this month to terminate his $44 billion stake in the company. media platform. Twitter vowed to continue with the deal and hit back by suing Musk.

Elon Musk wants out of Twitter deal

“After making a public spectacle of Twitter getting into the game and proposing and then signing a vendor-friendly merger agreement, Musk apparently believes that he—unlike any other party governed by Delaware contract law—is free to change his mind and throw out . the company, disrupt its operations, destroy shareholder value and walk away,” the company wrote in its lawsuit.

Nell Minow, a corporate governance expert who is vice chairman of ValueEdge Advisors, said the timing of Twitter’s shareholder vote, which is a necessary step in closing the deal, is probably not a coincidence.

The pre-trial shareholder vote suggests Twitter is proceeding with business as usual.

“I think it’s strategic,” she said. “If I were a lawyer advising Twitter, I would say the power move here is to act as the deal moves forward.”

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Twitter is committed to acting in the best interests of its shareholders and has indicated that closing the deal remains its goal. A Delaware judge set the case for trial in October.

“It’s all just a big battle game as they move the pieces around,” added Minow, an investor in Tesla, Musk’s electric car company.

Godfrey Kemp

"Bacon fanatic. Social media enthusiast. Music practitioner. Internet scholar. Incurable travel advocate. Wannabe web junkie. Coffeeaholic. Alcohol fanatic."

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