Technology

According to rumors, the Twitter board of directors will meet with Musk to discuss the deal.

Elon Musk reportedly met with Twitter’s board of directors over the weekend to discuss his $43 billion (£33.6 billion) buyout offer.

Following the announcement of the Tesla CEO’s bid, Twitter’s management declared a “poison pill” strategy to stave against a hostile takeover.

Mr Musk intends to fund his effort with the help of Morgan Stanley and other financial institutions in the United States.

Twitter’s representative declined to comment on the reports.

According to Reuters, the New York Times, and Bloomberg – citing anonymous sources – details of Mr Musk’s plan to finance his offer, which were provided to US authorities on Thursday, made Twitter’s 11-member board seriously contemplate a prospective transaction.

According to a regulatory filing, Mr Musk, who owns more than 9% of Twitter, has secured a $46.5 billion funding package for his bid.

The money will come from a combination of his own holdings and the backing of Morgan Stanley and other Wall Street corporations.

Following Mr Musk’s announcement of the fundraising proposal, a number of Twitter shareholders allegedly contacted the firm, urging it not to miss out on a prospective deal.

Many investors would see the conversations “as the beginning of the end for Twitter as a public business, with Musk likely now on a road to acquire the company unless a second bidder enters into the mix,” according to Dan Ives, an analyst at investment firm Wedbush Securities.

Mr Ives added that a hostile takeover bid by Mr Musk, the world’s wealthiest man, would place “additional pressure on the board with their backs against the wall in this Game of Thrones war for Twitter.”

Mr Musk turned down a seat on Twitter’s board of directors earlier this month, limiting the number of shares he could buy. On April 14, he made an unsolicited offer for the company.

The next day, Twitter’s board of directors revealed a proposal to safeguard the company from a hostile acquisition by implementing a “limited-duration shareholder rights plan,” sometimes known as a “poison pill.”

This action prevents anyone from owning more than a 15% share in the company. It accomplishes this by allowing people to purchase additional shares in the company at a reduced price.

When a person or company tries to take over another company against the wishes of the target company’s management, it is referred to as a hostile takeover bid.

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