Elon hostile Twitter Offer creates fear among investors
Business Magnate and CEO, Product Architect of Elon Musk startled the investors this weekend. Elon hostile Twitter offer created concern with the investors. The founder and CEO of the companies Space X, The Boring Company floated a cryptic tweet with the word ‘tender’. The word signaled Elon’s complete control.
Elon hints at a possible takeover. Files the proposal last week.
The world’s richest person and an entrepreneur filed a $43-billion proposal offering $54.20 a share for the social network. Twitter retaliated with a poison pill strategy, subsequently making it harder to acquire more stake.
Twitter hostile takeover-Calendar of the events
The suspense between Elon Musk and Twitter has gone through many updates. Last week Elon Musk disclosed a 9.2% stake in Twitter. Following this Elon Musk launched an hostile take over bid to buy Twitter for $43 billion. According to the Washington Times, Elon Musk justified the reason for the takeover, as he felt that it needed to be run like a private organization.
Events so far:
-Elon Musk made public his 9.2% stake in Twitter(SEC)
-Twitter declares, Elon owns 73,486,938 as shares of common stock in his personal capacity.
Twitter Inc appointed Tesla CEO Elon Musk to its board,
Elon to serve as company’s Class-II director (Term expiring at Twitter’s 2024 annual meeting of stockholders)
The board offered Musk the seat. He rejects. Musk Offered Twitter Board Seat, Rejected
Musk initiates hostile Twitter take over bid. Says he shall unlock its true potential.
Offers to buy Twitter for USD 43 billion, files with US Stock Exchange
Shall pay $54.20 per share to the holders, a 54% premium over January 28 closing price
Here is an excerpt of CNN news
Twitter counteracts Elon’s attack with a ‘Poison Pill measure’
Twitter’s board of directors resorted to the ‘Poison Pill’ to make it harder for Musk to acquire the company. For those who don’t know, a ‘Poison pill’ preserves the right for Twitter shareholders other than Musk to acquire more share of the company at a relatively inexpensive price, thus nullifying the Musk stake. If Elon targets more than 15%, the clause shall be triggered. The validity of the pill plan is for 1 year.