Elon Musk may bring wealthy partners to acquire Twitter


San Francisco, Apr 16 (IANS): As Twitter adopts the 'poison pill' strategy to stop Elon Musk from forcefully buying it, the Tesla CEO is reportedly speaking to investors who could partner with him on acquiring the micro-blogging platform.

According to a report in The New York Post citing sources, "a new plan that includes partners could be announced within days".

This could be Musk's 'Plan B' as he mentioned during a Ted Talk show this week on acquiring 100 per cent of Twitter for nearly $43 billion.

Musk may join "private-equity firm Silver Lake Partners, which was planning to co-invest with him in 2018 when he was considering taking Tesla private", the report said late on Friday.

Egon Durban, who is the co-CEO of Silver Lake, is a Twitter board member.

"He led Musk's deal team during the 2018 failed effort to take Tesla private," the report added.

Silver Lake declined to comment on the report.

Twitter's board of directors has unanimously adopted a limited duration shareholder rights plan following an unsolicited, non-binding proposal to acquire Twitter by Musk.

The rights plan or "poison pill" strategy is used by a firm to prevent or discourage a potential hostile takeover. It allows existing shareholders the right to purchase additional shares at a discount, effectively diluting the ownership interest of a new and hostile party.

"But that pill may not stop other entities or people from acquiring their own shares of up to 15 per cent of the company," the report noted.

"Those owners could partner with Musk to force a sale, make changes in the executive ranks or push for other overhauls of the company," it added.

With 9.2 per cent stake, Musk is one of the largest shareholders in Twitter.

Asset management firm Vanguard Group disclosed last week that its funds now own a 10.3 per cent stake in Twitter which makes it the largest shareholder.

Musk also started a new poll with his nearly 82 million followers on Twitter, with the subject line "Taking Twitter private at $54.20 should be up to shareholders, not the board".

"Will endeavour to keep as many shareholders in privatised Twitter as allowed by law," he posted.

 

  

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