Social media giant Twitter on Tuesday has filed a proxy statement with the SEC asking its shareholders to attend a special meeting on Elon Musk’s $44 billion takeover deal. In the filing, Twitter’s board of directors unanimously recommends its shareholders to vote in favor of the takeover deal.
Twitter Board Asks Shareholders to Approve the Takeover Deal
Twitter’s board of directors believes Elon Musk’s $44 billion deal and the other transactions contemplated by the agreement are fair to, advisable, and in the best interests of Twitter and its stockholders.
The board recommends shareholders to vote “FOR” the merger agreement, compensation payable to its executive officers, and adjournment of the special meeting due to insufficient votes.
Elon Musk established three entities X Holdings I, X Holdings II, and X Holdings III as part of the bid to acquire Twitter.
Under the deal, Twitter will merge with X Holdings II, a subsidiary of X Holdings I. After the merger, Twitter will become a wholly-owned subsidiary of X Holdings I, the parent firm. Moreover, Twitter will cease to be a publicly-traded company and common stock will convert into the right to receive $54.20 in cash, without interest.
The shareholders are expected to vote on the deal in July or August that would see Elon Musk acquire the company.
The special meeting will be conducted virtually in a live interactive webcast at http://www.virtualshareholdermeeting.com/TWTR2022SM. Shareholders will be able to listen to the special meeting live and vote online.
The company’s shares rallied higher in pre-market trading, with the pre-market high price of $39.51. At the time of writing, the stock price is trading up 2% at $38.19.
Elon Musk Seeks Solving Unresolved Matters Before the Takeover
The board’s recommendation came just after Elon Musk doubts over the completion of the $44 billion deal. The most important matter for Musk remains the number of fake accounts on Twitter. He believes the deal can’t move forward until Twitter’s data on fake accounts are shared. Secondly, debt financing is also a roadblock as Musk is uncertain about it. And the last is shareholders‘ approval of the deal.
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