Shares of Twitter closed at $48.93 on Friday, sending orders to Musk, who reports uncertainty over deals.
Twitter, Inc. is under increasing pressure to deal with partners Elon Musk, even as the world's richest man has been described for a $43 billion social media platform as their best and lowest offer, they said. on Sunday people familiar with the matter.
As Twitter shareholders voiced their views on the deal price, many approached the company after Musk drafted his plans on Thursday and urged him not to jump at the chance to negotiate a deal, the sources said. of anonymity in chap.
Twitter's board is expected to meet Musk's $54.20 per share for the company at a very low rate, it reports quarterly earnings on Thursday. The sources told Reuters that some shareholders are still willing to accept that position with Twitter seeking to improve the situation for Musk, whose net worth Forbes estimates at $270 billion.
One option available to the Twitter board is to try to persuade Musk to open his books and try to improve his presentation. Another problem could be bid rigging from other potential bidders. The sources said that while it is not yet clear how he will receive Twitter, it is more likely that Lord Musk will try to improve his offer from the board, even if he rejects the current offer.
"I wouldn't be surprised to wake up next week and see what Mr. Musk described as his best and last offer of $64.20 a share," a fund manager said on Twitter during an anonymous discussion. Secret conversations with a group.
"He can also give radically anything. Anything is possible," said fund manager Lord Musk.
Twitter shares closed at $48.93 on Friday, thanks to a bid to Musk's bid, raising questions about the bid.
Twitter took the poison pill after Elon Musk ordered it to prevent him from acquiring more than 9% of the company's shares to more than 15% without negotiating with his board. In response, Musk threatened to use the support of his partner on Twitter to withdraw his permission.
The sources said the concern the board sees in an email is that unless it seeks to broker negotiations with Lord Musk, it could support multiple shareholders in the bidding process. The sources added that while Twitter will bar Pill shareholders from offering their shares, the company is concerned that its debt management could be significantly weakened if it turns out to go against the wishes of many of its investments.
Mr. Musk, CEO of Tesla Inc. The electric vehicle maker, who was on Twitter, revealed that since his April 14 tour he has sought support for offers from him. Musk said that Twitter is taking on a private way to grow and become a platform for true freedom of expression.
Representatives at Twitter and Musk did not immediately respond to requests for comment.
The Wall Street Journal on Sunday reported on some encounters with Musk's followers on Twitter. The newspaper also announced that Musk and Twitter would meet on Sunday to discuss receiving offers.
The sources said price expectations among Twitter shareholders for the deal vary widely depending on their investment plans. The sources said long-term active shareholders, who own the majority of shares in Twitter along with its financial index, have higher expectations, some as high as $60 a share. The sources added that Paraj Agrawal, who became Twitter CEO in November, is a time to add value to the company.
"I don't think Elon Musk's proposed offer ($54.20 per share) gives Twitter almost intrinsic value for growth prospects," Twitter contributor Saudi Prince Alwaleed bin Talal said on Twitter on April 14.
The sources said that short-term investors such as hedge funds want Twitter to accept Musk's offer or simply ask for a small raise. Some of these issues are the recent drop in the value of tech stocks amid concerns about inflation and the slow economy, making it unlikely that Twitter will provide more sources of added value in a shorter period of time.
"I mean, take $54.20 a share and do it," said Aranji, a portfolio manager at Kerrisdale Capital Management, a hedge fund that owns 1.13 million shares of Twitter, or 0.15% of the company. Investor since early 2020.
One of the silver linings on Twitter's board, sources say, is that Musk's offer didn't appear to convert large numbers of Twitter followers into new San Francisco-based corporate partners for win his bid. According to sources, the number of investors on Twitter has fallen from around 20% before his stake in Musk on April 4 to around 22%.
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