Elon Musk is preparing to take Twitter private with the support of one of Wall Street’s largest private equity firms.
In New York, the Twitter stock rose 7.6% on expectations that the purchase could yet be completed.
Musk stunned the globe last week when he made an offer of $54.20 per share to take Twitter private.
To counter the acquisition, Twitter has implemented a “poison pill” defense mechanism, in which it issues more shares to prevent an individual shareholder from accumulating a greater stake in the firm.
The company stated in a filing that the plan would “protect stockholders from coercive or otherwise improper takeover efforts.”
The company earlier announced Elon Musk’s nomination to its board of directors, with CEO Parag Agrawal tweeting: “Through interaction with Elon in recent weeks, it became evident to us that he would offer enormous value to our Board.”
Later, Agrawal tweeted that Musk will no longer be joining the board, saying he “believe[s] this is for the best,” but adding that “there will be diversions ahead.”
Musk owns a 9.6% stake in Twitter, which is worth $3.6 billion (£2.7 billion). If he can’t buy the company outright, he’s threatened to sell his stake.
Musk stated in a weekend tweet that if he took over the Twitter board, the members would not be paid.
Apollo did not respond to a request for comment right away.
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News Source: Evening Standard