Twitter’s board said it plans to enforce its US $44 billion agreement to be bought by Elon Musk, saying the transaction is in the best interest of all shareholders.
“We intend to close the transaction and enforce the merger agreement,” the board said on Tuesday (May 17) in a statement to Bloomberg News.
Directors voted earlier to unanimously recommended that shareholders approve Mr Musk’s US$54.20-a-share offer.
The proposed takeover includes a US$1 billion breakup fee for each party, which Mr Musk will have to pay if he ends the deal or fails to deliver the acquisition funding as promised. Mr Musk might be released from that requirement if he can show a material change in the company’s situation or the information it has provided.
The board’s statement comes as Mr Musk appears to be manoeuvring to ditch or renegotiate his offer.
Earlier last week that the deal was “on hold” until he gets more information, specifically proof from Twitter that so-called spam bots make up less than 5 per cent of its users.