Elon Musk ready to fight against the management of Twitter

Elon Musk’s much-discussed takeover bid will be on the table at a Twitter shareholder meeting on Wednesday. If the richest man in the world and the management of the social media giant continue to clash, a legal battle is approaching.

In the United States, the soap opera of the crazy takeover of the social media giant Twitter will continue this Wednesday at 7 p.m. Belgian time. After the candidate buyer and boss of Tesla, Elon Musk, has led a virtual tussle with management in recent days, a physical meeting of shareholders of the social network is taking place this evening.

9.2%

Billionaire Elon Musk already owns 9.2% of Twitter.

On the program: a vote on $44 billion takeover bid launched by the richest man in the world. At $54.20 per share, this offer, at a time when tech stocks are in the process of being shattered, can be described as very generous. After Snap’s profit warning, more than $100 billion in market value went up in smoke Tuesday afternoon. Twitter shares have also taken a big hit.

So much for the certainties. Regarding the vote, concretely, what do we know? Two sides will face each other: Elon Musk, who put the tender offer “on hold” due to uncertainties linked to the number of fake accounts on Twitter, against the management, who wants the billionaire to respect his agreement, as well as the investors gathered , ready to sell their shares at the agreed price.

Many suspect Mr. Musk, who already owns 9.2% of Twitter, of using the presence of fake accounts as a smokescreen to scupper the deal or negotiate a lower buyout price. But the management categorically excludes this possibility. Twitter’s attorney reassured employees that “there is no outstanding deal.” In other words: Musk has to pay.

The saga is far from over

If the boss of Tesla is legally up against the wall – the fact that he deemed unnecessary an in-depth audit of the figures concerned does not play in his favor – observers are not all reassured. “Accepting a lower offer price would be a better alternative for Twitter’s board than going it alone while Musk fights the lawsuit,” an analyst warns.

For those who are already bored by this unedifying spectacle, bad news: the takeover agreement is valid until October 22 and can be extended for six months. And that’s not to mention the potential legal battle.

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