Twitter shareholders vote in favor of Elon Musk’s $44 billion takeover deal

The vast majority of Twitter (TWTR) shareholders on Tuesday voted in favor of Musk’s $44 billion takeover bid, valued at $54.20 per share. Shares of the company opened Tuesday at just under $41 per share, nearly 25% below the trade price.
A preliminary tally indicated that 98.6% of votes cast on Tuesday were in favor of the deal, Twitter said in a statement.

“Twitter stands ready and willing to complete the merger with Mr. Musk’s affiliates immediately, and in any event, no later than September 15, 2022, the second business day following the satisfaction of all conditions precedent, which is the time required by the merger agreement.”

The vote came days after Musk’s third letter to twitter seeking to terminate their deal, which was tied to an alleged $7.75 million severance package the company paid to its former security chief, Peiter Zatko, who later blew the whistle about its alleged security and privacy vulnerabilities.

In the letter, Musk’s lawyers claimed the payment – which was allegedly made to Zatko and his attorneys on June 28 as part of a separation agreement – violated a provision of the acquisition agreement. . Twitter agreed not to pay severance payments to employees for amounts outside the “ordinary course of business consistent with past practices,” according to the contract.

Twitter slammed Musk’s latest effort to walk out of deal as ‘invalid and at fault’.

Musk first sent a letter to end the deal in July, alleging Twitter violated the agreement by misrepresenting the number of spam and fake bot accounts on its platform. Twitter sued Musk to complete the acquisition, accusing the billionaire of using bots as a pretext to get out of a deal he developed buyer’s remorse for following a market downturn.

Zatko testified before the US Senate on Tuesday over what he alleged were Twitter’s serious security and privacy vulnerabilities, including the possibility of having foreign intelligence agents on its payroll.

The case between Musk and Twitter is set to go to trial on October 17.

— Clare Duffy of CNN Business contributed to this report

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