Twitter investors were advised by a proxy advisory firm to back Tesla CEO Elon Musk’s bid to acquire the microblogging service next month, according to a report. Musk, who agreed to buy Twitter for $44 billion (around Rs 3,51,300) in April, tried to walk away from the deal in July, claiming he was provided with misleading information related to the number of fake accounts on the platform. . Twitter and Musk are set to face off in a US court in October.
Institutional Shareholder Services (ISS), a proxy advisory firm, has advised Twitter shareholders to vote to approve Musk’s plan to buy the company. Report via Reuters. The firm’s recommendation comes two weeks before shareholders vote on the takeover deal.
ISS reportedly said it needed to vote on the proposal, as the deal would provide the microblogging service with liquidity, while shareholders would receive value from an all-cash transaction. According to the report, ISS also noted that there was little resistance to the takeover deal from shareholders, who are expected to vote on the deal on September 13.
Musk agreed to buy Twitter for $54.20 (roughly Rs. 4,300) per share in April, but then told Twitter that it did not intend to go through with the deal, prompting Twitter to take it to a US court. Deal according to the contract.
Meanwhile, Musk recently introduced whistleblower Peter Zatko, who recently revealed the shocking information on Twitter. The Tesla CEO is expected to ask Zatko, who previously served as Twitter’s security chief, for details on how the microblogging site counts spam accounts.