According to a regulatory filing Tuesday, Twitter’s board unanimously recommended that shareholders approve the planned $44 billion sale of the firm to billionaire and Tesla CEO Elon Musk.
Musk restated his willingness to proceed with the acquisition during a virtual conference with Twitter staff last week, however shares of Twitter remain considerably below his selling price, indicating great uncertainty that it will materialise.
Musk mentioned shareholder approval of the acquisition as one of numerous “unresolved concerns” relating to the Twitter deal in an interview with Bloomberg on Tuesday at the Qatar Economic Forum.
Twitter Inc. shares were practically unchanged immediately before the opening bell Tuesday, falling far short of Musk’s offer of $54.20 per share. The stock last hit that level on April 5, when the firm offered Musk a seat on the board before he proposed to buy out Twitter entirely.
Twitter’s board of directors “unanimously recommends that you vote (for) the acceptance of the merger agreement,” according to a filing with the US Securities and Exchange Commission on Tuesday. If the transaction closed today, investors in the firm would benefit $15.22 for each share they held.