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Twitter board urges shareholders to approve sale to Musk in revised proxy filing

Twitter still hasn't set a date for shareholders to vote on its acquisition by Elon Musk, but it's urging them to approve the deal despite the fact it's suing Musk over trying to wiggle his way out

PGurus Newsdesk

July 16, 2022

Twitter still hasn't set a date for shareholders to vote on its acquisition by Elon Musk, but it's urging them to approve the deal despite the fact it's suing Musk over trying to wiggle his way out

Twitter still wants shareholders to vote for the Musk deal despite the lawsuit

Microblogging site Twitter‘s board of directors unanimously recommended that its shareholders vote to approve tech billionaire Elon Musk‘s $44 billion acquisition of the company.

Twitter said in a proxy filing with the US Securities and Exchange Commission (SEC) on Friday that it is inviting shareholders to attend a special meeting at an unspecified date to vote on a proposal to adopt the original acquisition plan made in late April, reports CNBC.

“We are committed to closing the merger on the price and terms agreed upon with Mr. Musk. Your vote at the special meeting is critical to our ability to complete the merger.” the company was quoted as saying in the filing.

Twitter reminded investors that the purchase price represented a 38 percent premium to where the stock was trading before Musk first disclosed a stake in the company. It’s fallen dramatically since then, closing on Friday at $37.74, which is 30 percent below the agreed-upon deal price.

Musk said last week that he was terminating the deal, after claiming that Twitter failed to provide the requested data on bots and how prominent they are on the platform.

The microblogging site responded by suing Musk to enforce the merger agreement. A recent report indicated that Twitter lawyers from Wachtell, Lipton, Rosen & Katz law firms were preparing for a long-drawn court battle after Musk filed paperwork with the US SEC to exit the acquisition deal.

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