Rumor: Twitter board wants to reject Musk’s takeover offer

Twitter’s board of directors reportedly plans to reject Elon Musk’s takeover offer. The billionaire responded to that rumor by stating that it is the shareholders, not the board of directors.

The board of directors sees the takeover offer that Elon Musk made on Thursday as ‘unwelcome’. The board wants to rally behind the CEO of Twitter, Parag Agrawal. That reports The Information based on sources that are familiar with the situation. The Information often publishes information about American tech companies early.

According to The Wall Street Journal, Twitter is considering to fend off against a hostile takeover bid. Twitter has several ways to protect itself. This gives the company the opportunity captured to be able to issue blank check preferred stock. This is an accelerated opportunity to release shares to certain investors, without the consent of the existing shareholders. This would undermine Musk’s position, with 9.2 percent currently Twitter’s largest shareholder.

Musk responded to the report by stating that the board does not decide on his takeover offer, but that the shareholders do. The CEO of Tesla and SpaceX announced on Thursday that he wants to buy Twitter for about 38 billion euros to turn the company into a private company. Musk has been very interested in Twitter since last week: he took a stake in the company and was going to join the board of directors, but the latter did not happen.