Twitter’s board has recommended unanimously that shareholders approve the proposed $44 billion sale of the company to Tesla CEO Elon Musk, according to a regulatory filing Tuesday.
Shares of the company stock rose to $38.98 (3%) before the opening bell Tuesday, but a longshot from the $54.20 per-share that Musk has offered for each share.
As per the agreement, when the merger happens each outstanding share of the common stock (subject to certain exceptions) will be automatically canceled and will cease to exist. These will be converted into the right to receive $54.20 in cash, per-share, without interest.
In the filing Tuesday, the board’s recommendation read, “The Twitter Board unanimously recommends that you vote: (1) “FOR” the adoption of the merger agreement; (2) “FOR” the compensation that will or may become payable by Twitter to our named executive officers in connection with the merger; and (3) “FOR” the adjournment of the special meeting, from time to time, to a later date or dates, if necessary or appropriate, to solicit additional proxies if there are insufficient votes to adopt the merger agreement at the time of the special meeting.”
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“We currently expect to complete the merger in 2022. However, the exact timing of completion of the merger, if at all, cannot be predicted because the merger is subject to the closing conditions specified in the merger agreement, many of which are outside of our control,” said the SEC filing.