Is Elon Musk Planning Hostile Twitter Takeover Bid?
Elon Musk has left open the possibility of a hostile takeover of Twitter, after turning down a position on the social media giant’s board.
By not joining the board, Musk is no longer required to keep his stake in Twitter below 14.9 per cent. This suggests that a bigger slice of ownership is preferable to Musk — who, with 9.2 per cent is now the largest shareholder — than being one of twelve voices on a company board.
Shares rose 1.7 per cent in late trading, after Musk turned down the board position.
A new filing with the Securities and Exchange Commission says while Musk has no “present plans or intentions” to increase his holding, he “reserves the right to change his plans at any time.”
Musk can also make a hostile takeover bid, directly appealing to shareholders.
Twitter is bracing itself.
“There will be distractions ahead, but our goals and priorities remain unchanged.” CEO Parag Agrawal wrote in an internal memo to staff.