Monday, April 25, 2022
What Do Investors Want?
The Twitter board is meeting to consider Elon Musk's offer for the company, which is at a premium to its current stock price. Directors owe it to investors to get the best deal possible if a company is to be sold. It is part of governance duties. They could decide to resist the tender offer as being too low but they also need to consider Twitter's earnings, which are due out on Thursday afternoon. A board is the proxy for individual holders of the stock. It is not supposed to be in management's pocket, although often it is. Twitter had adopted a poison pill to fend Musk off, but Musk upped the ante and announced he has lined up the financing to buy the company out. If the board elects to resist, it will turn into a PR battle until Musk secures enough shares to name his own slate of directors and take the company over. It could be fascinating to watch.
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