Elon Musk’s bid to buy Twitter for an estimated $44 billion has been pending since April for a number of reasons, one of which is that Musk needs to gain shareholder approval to close the deal.
Looks like things are progressing. new one filing with the SEC revealed on Tuesday that Twitter’s board unanimously agreed to urge shareholders to approve the pending deal.
“Twitter’s Board of Directors, after considering the factors more fully described in the attached proxy statement, unanimously: (1) determined that the merger agreement is reasonable and that the merger and other transactions contemplated by the merger agreement are fair, reasonable and reasonable.” are in the best interests of Twitter and its shareholders; and (2) have adopted and approved the merger agreement, merger and other transactions contemplated by the merger agreement,” the filing reads.
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Musk himself is currently the majority shareholder of Twitter, owning an estimated 10% of shares in the company.
The board’s unanimous decision isn’t unexpected — board members also voted unanimously to accept Musk’s initial bid to buy Twitter in April.
At that time, the billionaire agreed to buy the company for $54.20 per share in cash, and all shareholders would receive $54.20 in cash for each of their shares if the deal closed.
Twitter would also become a privately held company under Musk.
The specific date and time of the shareholder meeting was not disclosed. documentAlthough Twitter CEO Parag Agarwal has said that the deal is expected to close by the end of this year, others predict the meeting could take place by the end of July.
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Musk was given a . slogged with class action lawsuit last month.
The legal document alleges that Musk violated corporate laws by delaying disclosure about how many shares of Twitter he had prior to his bid to buy the company, as well as claiming that the billionaire was negotiable through negotiations. The shares were kept secret for insider information prior to purchase. With Twitter board members and officials.
In addition to the shareholder vote, Musk must also provide proof of financing to close the deal.
As of Wednesday afternoon, Twitter shares were down Around 39% in a one-year period.