Elon Musk Win The Majory Vote Of The Share Holders Of Twitter
Shareholder's Voting Process
The sources said the final date for the shareholder vote on the deal is Tuesday, but enough investors had given their vote by Monday evening for the result to be as expected. The sources requested obscurity ahead of a formal announcement. Twitter and spokespersons for Musk did not directly respond to the appeal for comment.
Musk has told Twitter he will not go further with the acquisition, arguing he was hoodwinked over the fake accounts on the platform and was not notified of a pay settlement the company reached with one of its prior executives. The two parties are scheduled to battle it out in court next month.
The Stock Market Trends
Shareholders were widely expected to vote in favour after a stock market downturn made Musk's $54.20-per-share deal for Twitter, which was signed in April, look pricey in the current environment. Twitter shares are now hovering around $41.
Earlier on Monday, Twitter said payments made to a whistleblower did not breach any terms of its sale to Musk after the world's richest man made another attempt to scrap the deal. Twitter's lawyers said Musk's reasons for wanting to back out of the deal were "invalid and wrongful."
The Whistleblower Peiter Zatko
Last week, Musk's lawyers said Twitter failed to seek his consent before paying $7.75 million to whistleblower Peiter Zatko. His lawyers violated the merger agreement, which restricts when Twitter could make such payments.
Zatko, who Twitter fired in January as the company's security head, accused the social media firm last month of falsely claiming it had a solid security plan and making misleading statements about its defences against hackers and spam accounts. The whistleblower will meet the U.S. Senate Judiciary Committee on Tuesday to discuss the allegations.
The Twitter Vs. Musk
Wedbush analyst wrote in a note, "With the Musk camp now being allowed to include the Zatko claims in its testimony for Delaware, tomorrow's hearing will be closely watched by the Street." The Twitter vs Musk trial is scheduled to start on Oct. 17 in Delaware Chancery Court. Lawyers for Musk, who is also CEO of electric car maker Tesla Inc, were not immediately available for comment.