Home » US business news » Twitter shareholders approve Elon Musk’s $44 billion takeover bid despite his attempts to pull out

Twitter shareholders approve Elon Musk’s $44 billion takeover bid despite his attempts to pull out

By Nithya Bose in US business news, posted September 14, 2022

Twitter shareholders have approved Elon Musk’s $44 billion acquisition, prompting the deal’s turning into a legal fight where the billionaire is trying to pull out of the buyout.

During a seven-minute special meeting of shareholders, about 98.6 percent of votes were cast in favor of the motion.

The stockholders approved two proposals - one to accept the takeover bid from Musk and another to specify how the company's executives will be compensated due to the deal.

Both measures were approved, but Twitter will reveal the final vote breakdown "at a later date" when it files papers with the Securities and Exchange Commission.

Now, Twitter will continue to legally try to push Musk to acquire the firm after he withdrew the deal earlier.

Though shareholders approved the deal, which valued each share at $54.20, the Delaware Chancery Court trial in October will determine whether Musk could terminate the deal.

Musk had cited bots and spam as reasons for canceling the merger agreement, but Twitter's lawyers said Musk was truly concerned about "World War 3."

The court ruled that Musk can include concerns brought by the company's former security head turned whistleblower, Peiter Zatko.

Zatko had separately testified at a Judiciary Committee hearing on Tuesday, September 13.

He threw light on his accusations Twitter's security policies endanger United States national security.

Twitter has opposed his allegations, arguing that he is making false accusations.

He was summoned before the committee to present further information on his claims.

Zatko said Twitter’s security team “had been contacted and told that there was at least one agent of the MSS, which is one of China’s intelligence services, on the payroll inside Twitter.”

A former Twitter employee was found guilty last month of spying for Saudi Arabia by gaining access to private user information in return for money.

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Zatko has become a player in the legal saga surrounding Mr. Musk's decision to withdraw from the Twitter takeover.

In July, Twitter sued the billionaire for breach of contract.

Mr. Musk filed a countersuit, accusing the firm of lying about the condition of its business and key information regarding its platform users.

Twitter claims Mr. Musk changed his mind as market circumstances worsened.

Mr. Musk received court permission last week to modify his action to incorporate portions of Zatko's claims.

Source: Engadget

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