July 27, 2022
Twitter has announced it will hold a shareholder meeting on September 13 to vote on Elon Musk’s takeover of the company.
Twitter’s plan was announced in a filing. Shareholders will vote at the meeting on a proposal to approve the compensation that Twitter will pay to certain executives in connection with the buyout.
Under the proposal, Twitter shareholders will be entitled to US$54.20 in cash for each of their own common shares if the buyout deal is sealed.
The deal is far from complete, however, as Elon Musk has openly expressed his decision to terminate the deal. Musk accused Twitter of violating several provisions of a US$44 billion merger agreement in April by failing to disclose enough data on spam accounts.
Musk’s lawyer also accused Twitter, in a regulatory filing, of violating an agreement intended to “preserve substantially intact the material components of its current business organization” by firing two managers, laying off a chunk of its talent acquisition team, instituting a hiring freeze, withdrawing job offers and resigning three department heads.
In response to Musk’s decision to terminate the deal, Twitter’s chairman, Bret Taylor said on the platform that the board planned to take legal action to enforce the merger agreement.
The sources for this piece include an article in Reuters.
