(ORDO NEWS) — Shareholders of Twitter overwhelmingly approved the takeover of the company by Elon Musk. Major Twitter shareholders, including index fund managers who control about 20% of the shares, are ready to support the deal, which Musk himself wants to exit, sources said. Musk has about 10% stake in the social network.
Twitter shareholders are ready to approve the takeover of the company by billionaire Elon Musk, reports The Wall Street Journal, citing early shareholder voting results. Twitter has previously filed a lawsuit demanding that the world’s richest man be forced to complete a deal to buy the social network for $44 billion. Musk himself is trying to get out of it.
According to the newspaper’s interlocutors, who are familiar with the voting process, investors approve the deal with a large majority of votes. Voting results may change at the meeting, which is scheduled for Tuesday morning, September 13th. Twitter’s major shareholders, including index fund managers who together control roughly 20% of Twitter’s shares, are poised to back the deal, some sources said.
Musk is the company’s largest shareholder with almost 10% of the shares. He has not yet voted and is unlikely to vote for the deal, sources said. The agreement between Musk and Twitter requires the billionaire to vote in favor of the deal. However, his support is not decisive if a sufficient number of investors support the deal.
Twitter executives have announced that they have reached an agreement with Tesla founder Elon Musk to buy the company in April. However, already in May, the entrepreneur announced that there would be no deal until the company discloses the proportion of bots and spam accounts among real users. In his opinion, fake accounts can exceed 20-25% of all Twitter users. On July 8, Musk officially backed out of buying Twitter and notified the company.
A few days later, Twitter filed a lawsuit against the billionaire to complete the deal. The company, in a lawsuit, said that Musk’s behavior in preparation for the purchase amounted to “bad faith” and accused him of acting against the deal due to market changes. In late July, Musk filed a more than 160-page counterclaim against Twitter. At the same time, the businessman asked the court not to disclose the details of the statement of claim.
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