The Twitter board urged shareholders to approve the proposal of Elon Musk to takeover 100% of the company for $44 billion, Daily Mail reported on Tuesday.
Musk asserted his will to takeover the social media company last week during a virtual meeting with Twitter employees, however, the shares of Twitter are still below his offering price.
The company’s shares jumped by 3% to record $38.98 before the opening bell Tuesday. While Musk’s offer included that the price of the share would be $54.20 per share.
Twitter’s board of directors expressed that it “unanimously recommends that you vote (for) the adoption of the merger agreement.”
If the investors and shareholders accept the deal right now, they would profit $15.22 for each share.
Last May, Tesla’s CEO announced that his plan for Twitter’s takeover is on hold temporarily, he tweeted on Friday.
Musk said that he wants to review his plans due to the huge presence of spam and fake accounts on the platform in the first-quarter financial report for 2022.
Musk shortly asserted that he will not surrender the takeover bid, however, the shares of the platform dropped by 20% before they slightly rebounded.
The CEO of Tesla and SpaceX companies said that he secured $46.5 billion for financing his controversial deal for buying Twitter.
The leading social media platform, Twitter said that it will apply a plan for defending itself against Elon Musk’s takeover.
The plan is based on allowing the other shareholders to buy extra stock, according to the company’s latest statement.
It added: “The Rights Plan will reduce the likelihood that any entity, person or group gains control of Twitter through open market accumulation without paying all shareholders an appropriate control premium.