Source: News 18
Tesla CEO Elon Musk is reportedly in talks with investors to potentially partner with him on his new bid. This new bid is his attempt to buy social media platform Twitter Inc for $43 billion. The Chief Executive Officer of Tesla launched his surprising bid for the giant with a $54.20 per chase cash offer. This was as he claimed that he was the true leader to “unlock” its “extraordinary potential.” Clearly, the billionaire CEO is coming up a new scheme for his latest investment which could be announced soon.
Possibly, he could collaborate with global private equity firm Silver Lake Partners. The firm mainly invests in tech, and was a potential investor when Musk wanted to take Tesla private in 2018. The Co-CEO of the firm, Egon Durban, is already a board member of Twitter. He led Musk’s deal at the time of trying to take Tesla private.
On Friday, April 15, Twitter’s board responded to the offer of the South African-born entrepreneur. In response, they put in pace a one year “Rights Plan” following them getting one “unsolicited, non-binding” offer to buy the social media company.
The step would provide shareholders with the chance to acquire stock of the company at a discounted rate. This is if Musk increases his holdings to over 15% of the company. This was in a plan to forcefully designed to dilute his stake.
“The Rights Plan is intended to enable all shareholders to realise the full value of their investment in Twitter,” the board said in a statement.
They specified that the plan would lessen the possibility of any any entity, person or group gaining control of the company. This would be mainly by the means of the open market accumulation without paying all the shareholders an “appropriate control premium.” Or, without giving the Board enough time to make informed judgements. Along with it, taking “actions that are in the best interests” of the shareholders.
According to the Board, the Right Plan is set to be in action till April 14, 2023. Crucially, the billionaire CEO made his offer for the social media company in a letter to Bred Taylor, the chairman of the board. In the letter, he specified how he was offering to buy 100% of the company for $54.20 per share in cash. He said how this would a 54% “premium over the day” prior to the day of the announcement of his investment.
