Twitter board has filed a document with the SEC asking shareholders to accept Elon Musk’s $44 billion offer to acquire the company.
Social media giant Twitter on Tuesday has filed a proxy statement with the SEC asking its shareholders to attend a special meeting on Elon Musk’s $44 billion takeover deal. In the filing, Twitter’s board of directors unanimously recommends its shareholders to vote in favor of the takeover deal.
Twitter’s board of directors believes Elon Musk’s $44 billion deal and the other transactions contemplated by the agreement are fair to, advisable, and in the best interests of Twitter and its stockholders.
The board recommends shareholders to vote “FOR” the merger agreement, compensation payable to its executive officers, and adjournment of the special meeting due to insufficient votes.
Elon Musk established three entities X Holdings I, X Holdings II, and X Holdings III as part of the bid to acquire Twitter.
Under the deal, Twitter will merge with X Holdings II, a subsidiary of X Holdings I. After the merger, Twitter will become a wholly-owned subsidiary of X Holdings I, the parent firm. Moreover, Twitter will cease to be a publicly-traded company and common stock will convert into the right to receive $54.20 in cash, without interest.