Twitter board urges shareholders to approve sale to Elon Musk in revised proxy filing

In this article

The Twitter logo and trading information is displayed as a trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., May 3, 2022.
Brendan Mcdermid | Reuters

Twitter’s board of directors unanimously recommended that its shareholders vote to approve Elon Musk’s $44 billion acquisition of the company.

Twitter said in a proxy filing with the SEC on Friday that it’s inviting shareholders to attend a special meeting at an unspecified date to vote on a proposal to adopt the original acquisition plan made in late April.

“We are committed to closing the merger on the price and terms agreed upon with Mr. Musk,” the company said in the filing. “Your vote at the special meeting is critical to our ability to complete the merger.”

Twitter reminded investors that the purchase price represented a 38% premium to where the stock was trading before Musk first disclosed a stake in the company. It’s fallen dramatically since then, closing on Friday at $37.74, which is 30% below the agreed upon deal price.

Musk said last week that he was terminating the deal, after claiming that Twitter failed to provide the requested data on bots and how prominent they are on the platform. Twitter responded by suing Musk in an effort to enforce the merger agreement.

WATCH: Twitter sues Elon Musk