Wednesday, April 20, 2022

Musk to Team Up with Investors to Counter 'Poison Pill,' May Have an Inside Man on Twitter's Board: Report; Elon Musk can make three Twitter moves in takeover battle, and related stories

Musk to Team Up with Investors to Counter 'Poison Pill,' May Have an Inside Man on Twitter's Board: Report:
Elon Musk may be initiating a countermove to Twitter’s “poison pill” effort.
After the self-made billionaire and world’s richest man announced his intention to purchase 100 percent of the social media giant’s shares, Twitter issued a news release stating that the company’s board of directors had unanimously adopted a limited duration shareholders rights plan.
Essentially, the rule — known as a “poison pill” in finance jargon — allows Twitter’s shareholders to buy up cheap shares of the company, diluting the commanding stake that Musk holds. It goes into effect when a buyer obtains 15 percent or more of the company without board approval.
However, according to the New York Post, Musk is attempting to bring in other investors to help bolster his bid to take the company.
“Sources close to the matter” said that a partnership could be announced “within days,” the Post reported Friday.
Among the list of potential partners to team up with Musk is private-equity firm Silver Lake Partners. The two parties already have a working history.
According to the Post’s sources, the firm had previously planned to invest with Musk in 2018 when he attempted to take Tesla private.
The co-CEO of Silver Lake, Egon Durban, is a Twitter board member who personally “led Musk’s deal team” in 2018, the sources said. --->READ MORE HERE
Elon Musk can make three Twitter moves in takeover battle:
Elon Musk has three potential options for responding to the poison pill unanimously adopted by Twitter's board on Friday, as outlined by Wedbush Securities analyst Dan Ives.
The plan, which aims to prevent Musk from increasing his 9.2% Twitter stake to 15% or more, was enacted following his $54.20 per share offer to take the social media giant private.
Outline a Strategy & Vision
Musk's first choice, according to Ives, is to lay out his financing, strategy and vision for Twitter in a letter and presentation to the board and shareholders.
"Given Musk’s antics over the years as well as comments at last week’s TED conference, the Street remains skeptical on this bid and more details need to be highlighted to get more investors on board and increase pressure on the Board," Ives wrote in a note to clients on Sunday. --->READ MORE HERE
Follow links below to related stories:

What Is Elon Musk’s Plan B For Gaining Control Of Twitter?

Elon Musk says there’s a ‘Plan B’ to acquire Twitter if his current bid fails — but he doesn’t say what it is

Media’s laughable Musk panic and other commentary

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