Twitter keeps Durban, Musk’s ally, on the board, and rejects his resignation.

Twitter Inc said in a filing on Friday that it will not accept Egon Durban’s resignation from the board, two days after shareholders blocked his re-election at an annual meeting.

Durban is an ally of Elon Musk, who has proposed to privatize Twitter in a $44 billion deal.

Twitter said Mr Durban did not receive majority support in the re-election held earlier this week, due to “some institutional investors’ “voting policies regarding service limitations at the board of directors.”

Durban, which sits on the board of six other companies, has agreed to reduce its board service commitments to a maximum of five public company boards by May 25, 2023, Twitter said.

The social media company added that Durban has been an “effective member” of the board and brings “unrivaled operational knowledge of the sector.”

Wednesday’s vote against re-election could indicate shareholder skepticism of Musk’s plan or his willingness to pay for what he offered, but investors are expected to overwhelmingly approve the deal at another meeting that remains. to stare.

Silver Lake Partners, where Durban is co-CEO, helped arrange Musk’s $44 billion acquisition of Twitter. In 2018, Silver Lake offered to help fund Musk’s planned $72 billion bid to take electric car maker Tesla Inc.

Musk tweeted on May 13 that the Twitter deal was “temporarily pending” while he seeks more information on the proportion of fake accounts on Twitter.

Separately, the U.S. Securities and Exchange Commission said on Friday it was reviewing Musk’s disclosure of his April stake in Twitter.

Shares of Tesla Inc, of which Musk is the chairman and chief executive, rose almost 5%, while Twitter rose slightly in early trading. (Reporting by Nivedita Balu and Akash Sriram Bengaluru; Editing by Krishna Chandra Eluri and Shounak Dasgupta)

Leave a Comment