Twitter Board Urges Shareholders to Approve Sale to Elon Musk in Revised Proxy Filing

Brendan Mcdermid | Reuters
  • In an SEC filing on Friday, Twitter told investors that approving the company's sale to Elon Musk is the only remaining step in satisfying the merger agreement.
  • Twitter reminded investors that the purchase price of $54.20 marked a 38% premium to where the stock was trading prior to Musk disclosing his initial stake.
  • Musk has since tried to back out of the deal, while Twitter is suing him to ensure it closes.

Twitter's board of directors told shareholders on Friday that their vote to approve the $44 billion sale to Elon Musk is the last step to satisfying the merger agreement.

"Adoption of the merger agreement by our stockholders is the only remaining approval or regulatory condition to completing the merger under the merger agreement, and is an important and required step for our stockholders to receive the merger consideration," Twitter said in an updated proxy filing with the SEC.

Twitter is inviting shareholders to attend a special meeting at an unspecified date to vote on a proposal to adopt the original acquisition plan from late April.

The company said that in addition to needing shareholder approval, closure of the deal is subject to "ongoing litigation."

The updated filing provides a brief history of the legal tussle between Musk and Twitter over the past week. On July 8, Musk said 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. A few days later, Twitter responded by suing Musk in an effort to enforce the merger agreement.

Twitter's shares fallen dramatically in recent weeks since Musk began indicating that he wasn't committed to the agreement. The stock closed on Friday at $37.74, which is 30% below the agreed upon deal price of $54.20.

WATCH: Twitter sues Elon Musk

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