Musk seeks investor support for Twitter battle
Billionaire Elon Musk is attempting to persuade a number of partners to buy up chunks of Twitter to help him acquire the social network.
Twitter’s board introduced a shareholder rights plan on Friday in order to stymie Musk’s attempt to take control of the company.
Its ‘poison pill’ reaction followed rejection of Musk’s $54.20-a-share off on Friday, valuing the business at $43 billion.
Under its scheme, the company would flood the market with cheap shares to make it much harder for Musk to seize control. It would take effect once the Tesla tycoon’s 9.2% stake crosses a 15% threshold.
Musk has retaliated by opening talks with other potential co-investors, who could each buy stakes amounting to majority control.
The New York Post says Musk has turned once again to Silver Lake Partners, the private equity giant with which was in the frame when he considered taking Tesla private in 2018.
The poison pill manoeuvre could see Twitter’s shares fall and the board is said to be lining up other “white knight” bidders. Musk has warned that he would have to reconsider his position as a shareholder if the board rejects his offer. Mea
Twitter’s performance has been questioned by analysts. Despite having 200 million daily followers it has turned a profit just twice, in 2018 and 2019. Last year, it lost $221 million on $5 billion in sales. Its shares were floated at $45.10 nine years ago and closed on Friday at $45.08.