Elon Musk Offers to Buy Twitter; Is the Twitter Board Required to Accept Elon’s Offer?

By CNN. Elon Musk has made an offer to buy Twitter (TWTR) and take it private, saying he believes the company needs to be “transformed.”

According to an SEC filing, Musk has offered to acquire all the shares in Twitter he does not own for $54.20 per share, valuing the company at $41.4 billion. That represents a 38% premium over the closing price on April 1, the last trading day before Musk disclosed that he had become Twitter’s biggest shareholder, and an 18% premium over its closing price Wednesday.

Musk said the cash offer was his “best and final offer,” according to the SEC filing, adding that if it’s not accepted he would have to reconsider his position as a shareholder. (Read more from “Elon Musk Offers to Buy Twitter” HERE)

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Is the Twitter Board Required to Accept Elon’s Offer?

By Daily Caller. While Twitter is not required to accept Elon Musk’s multibillion dollar offer, the board does hold certain responsibilities to shareholders aimed at maximizing the company’s value, experts and industry leaders told the Daily Caller News Foundation.

“The question is whether the board would accept this offer,” Austen Allred, CEO and co-founder of Bloom Institute of Technology, told the DCNF. “They have a fiduciary responsibility to shareholders, so in order to turn it down they’d have to have a plan for how the company could be worth more than what Musk is offering, and they do expose themselves and the company to liability in doing so.”

Musk made an offer Thursday to Twitter to purchase 100% of the company for $43.4 billion, according to The Hollywood Reporter. The Tesla chief executive officer previously purchased a 9.2% stake in the technology platform on April 4, making him the company’s largest shareholder. . .

“The conservative thing from the board’s standpoint is to accept the offer or quickly seek out a higher bidder,” Allred added.

The board could reject Musk’s offer or refuse to negotiate even though the Tesla billionaire offered a substantial premium, as long it hasn’t broken its fiduciary responsibilities, Alon Kapen, partner and leader of the Emerging Companies and Venture Capital practice group at Farrell Fritz, told the DCNF. (Read more from “Is the Twitter Board Required to Accept Elon Musk’s Offer?” HERE)

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