Report says the Twitter board of directors will meet with Musk to discuss the deal
Elon Musk reportedly met with Twitter’s board of directors over the weekend to discuss his $43 billion (£33.6 billion) buyout offer.
Following the announcement of the Tesla CEO’s bid, Twitter’s management declared a “poison pill” strategy to stave off a hostile takeover.
Mr Musk intends to fund his effort with the help of Morgan Stanley and other financial institutions in the United States.
Twitter’s representative declined to comment on the reports.
According to Reuters, the New York Times, and Bloomberg, which cited anonymous sources, details of Mr Musk’s plan to finance his bid, which was disclosed to US authorities on Thursday, prompted Twitter’s 11-member board to seriously explore a prospective transaction.
According to a regulatory filing, Mr Musk, who owns more than 9% of Twitter, has secured a $46.5 billion funding package for his bid.
The money will come from a combination of his holdings and the backing of Morgan Stanley and other Wall Street corporations.
Following Mr Musk’s announcement of the fundraising proposal, several Twitter shareholders allegedly contacted the firm, urging it not to miss out on a prospective deal.
Many investors would see the conversations “as the beginning of the end for Twitter as a public business, with Musk likely now on a path to acquire the company unless a second bidder enters into the mix,” according to Dan Ives, an analyst at investment firm Wedbush Securities.
Mr Musk turned down a seat on Twitter’s board of directors earlier this month, limiting the number of shares he could buy. On April 14, he made an unsolicited offer to the company.
Anyone with more than 15% ownership of the company will be barred from doing so. This is accomplished by allowing people to purchase discounted additional shares in the company.
When a person or company tries to take over another company against the target company’s management’s wishes, it is referred to as a hostile takeover offer.