As negotiations between Twitter Inc and Elon Musk continue, here's what we know so far about the world's richest person's attempt to take the micro-blogging site private.
1.) Twitter is nearing a deal to sell itself to Elon Musk for $54.20 per share in cash, the price that he originally offered to the social media company and called his 'best and final', Reuters quoted people familiar with the matter.
2.) The micro-blogging site may announce the $43 billion deal later on Monday once its board has met to recommend the transaction to Twitter shareholders, the sources said.
3.) The company's decision to engage with Musk, taken earlier on Sunday, does not mean that it will accept his $54.20 per share bid, the sources added. It signifies, however, that Twitter is now exploring whether a sale of the company to Musk is possible on attractive terms.
4.) Twitter has not yet decided if it will explore a sale to put pressure on Elon Musk to raise his bid, according to the sources.
5.) The social media site has also not been able to secure so far a 'go-shop' provision under its agreement with Musk that would allow it to solicit other bids from potential acquirers once the deal is signed, the sources said. Still, Twitter would be allowed to accept an offer from another party by paying Musk a break-up fee, they added.
6.) Twitter wants to know more about any active investigations by regulators into Musk, including by the U.S. Securities and Exchange Commission (SEC), that would present a risk to the deal being completed, one of the sources said.
7.) Securities lawyers say that Musk, who settled charges that he misled investors by suggesting four years ago he had secured funding to take Tesla private, may have breached SEC disclosure rules as he amassed a stake in Twitter earlier this year.
8.) Twitter is also looking into whether regulators in any of the major markets it operates would object to Elon Musk owning the company, the source added. Were Twitter to establish that a sale to Musk would be risky, it could ask for a sizeable break-up fee, according to the sources.
The social media company had adopted a poison pill after Musk made his offer to prevent him from raising his more than 9 per cent stake in the company above 15% without negotiating a deal with its board. In response, Musk has threatened to launch a tender offer that he could use to register Twitter shareholder support for his bid.(With inputs from agencies)