Twitter’s board plans to enforce Elon Musk’s $44 billion transactions, stating that it is in the best interests of all shareholders, according to a Bloomberg report. “We intend to close the transaction and enforce the merger agreement,” the report said quoting the company.
A $1 billion breakup fee was included in the proposed takeover for each party, which Musk would have to pay if he terminated the transaction or failed to provide the acquisition funding. Musk, on the other hand, maybe exempt from the requirement if he can show a significant change in the company’s condition or the information it has provided.
The board’s move comes as Musk appears to be renegotiating the $44 billion deal.
Musk suggested on Monday that he could seek a lower price for Twitter Inc, saying that there could be at least four times more fake accounts than what the company has said.
When asked at a conference whether the Twitter deal is viable at a different price, Musk responded, “I mean, it’s not out of the question.”
Source: Economic Times