The board of Twitter unanimously recommended that shareholders approve the proposed $44 billion sale of the company to Tesla CEO and billionaire Elon Musk, according to a regulatory filing on Tuesday.
During a virtual conference with Twitter employees last week, Elon Musk reaffirmed his desire to proceed with the acquisition, but shares of the company are still trading well below his asking price, raising serious doubts about whether it will actually happen.
In an interview with Bloomberg on Tuesday at the Qatar Economic Forum, Musk named the approval of the agreement by shareholders as one of numerous “unresolved problems” pertaining to the Twitter acquisition.
Before Tuesday’s market opened, Twitter Inc. shares were practically unchanged and significantly below the $54.20 per share Musk has promised to pay. When it offered Musk a seat on the board prior to his bid to purchase the entirety of Twitter on April 5, the company’s stock last traded at that level.
The board of directors of Twitter stated in a statement with the U.S. Securities and Exchange Commission on Tuesday that it “unanimously recommends that you vote (for) the acceptance of the merger agreement.” Investors in the company would make $15.22 for each share they own if the deal were to close right away.