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Keep ’em coming, Elon! A shrewd businessman will know what can be done and be completely legal so Elon Musk is talking about partnering. Twitter is resisting, knowing what he’ll do so their lawyers put together a “poison pill” rule that would dilute his leverage. So a team of co-investors is planning on launching another offer in about 10 days. How much money will Twitter turn down to keep the status quo?
Musk is using our country’s laws
To do what he thinks should be done. The New York Post mentioned this will be “a complex deal that raises debt against both the company and possibly [Musk’s] own stock, as well as a giant cash equity infusion from co-investors. The co-investors will combined have more equity than Musk, but he will be the biggest single holder.”
Bloomberg added,
“Musk may try to partner with investors including Oracle Corp., given that its chief executive officer, Larry Ellison, is on [Tesla]’s board, along with a group of private equity firms including Thoma Bravo, Bloomberg Intelligence analysts Mandeep Singh and Ashley Kim wrote Friday. That partnership could raise the bid to $50 billion, they wrote.”
If the current Twitter board takes actions contrary to shareholder interests, they would be breaching their fiduciary duty.
The liability they would thereby assume would be titanic in scale.
— Elon Musk (@elonmusk) April 14, 2022
A tender offer
Will be done soon. A tender offer is defined by Investopedia as inviting “shareholders to sell their shares for a specified price and within a particular window of time. The price offered is usually at a premium to the market price and is often contingent upon a minimum or a maximum number of shares sold.”
Musk is also using the news coverage to his advantage. Aron Solomon is a chief legal analyst for Esquire. “We’re going to forget about Elon Musk and Twitter three, four or five days from now if he allows it to go out of the news spotlight. So, I think that he’s got to make some really interesting, quick moves if he has an ultimate endgame here.”
Plus another angle
Solomon continued, “And if that endgame is to acquire more than 50 percent of Twitter, I think it makes more sense to get those things in motion now. Like Elon Musk or not, one thing that we know is that he’s able to take things from zero to 60 very quickly, whether it’s SpaceX or Tesla or anything that he wants to do.”
One shareholder is Florida through it’s state pension fund. Governor DeSantis has wondered if Twitter is violating it’s fiduciary duty to the shareholders. Twitter turning down Musk is not a good business deal, that’s a massive return.
