Elon Musk is no longer the biggest shareholder, while he was trying to take over 100% ownership of the Twitter company.
At the beginning of this month, the world’s richest man, Elon Musk, revealed that he had bought 73.5 million shares, which means 9.1% of Twitter.
That is why he became Twitter’s largest shareholder.Â
Vanguard Group recently increased their presence on the social media platform Twitter.
So their share bumped out Mr. Musk from the top spot. Â
Last week, Vanguard disclosed that they owned 82.4 million shares of Twitter, which means 10.3% of the company.
According to recent filings with the U.S. Securities and Exchange Commission,Â
According to filings, the company increased its shares during the first quarter, and now Vanguard’s holdings are $3.78 billion, based on the recent Twitter stock price. Â
Previously, Vanguard had 67.2 million shares, which means around 8.4% of Twitter, according to FactSet. Â
Twitter’s board of directors officially responded to billionaire Elon Musk’s offer for a 100% takeover of Twitter.
The board of directors has proposed a new “shareholders’ right plan” to block Mr. Musk’s plan.
That was a murder of the billionaire’s efforts to take full control of the company. Â
The official press release said that they have adopted the right plan “following an unsolicited, non-binding proposal to acquire Twitter”.
In the financial world, this move is known as a “poison pill”.
In simple words, the poison pill means blocking hostile takeover by certain shareholders of the right to purchase more and more stocks if someone attempts to seize control. Â
The Rights Plan aims to ensure that all Twitter shareholders get the most out of their investment.
The Rights Plan will make it less likely for any entity, person, or group to gain control of Twitter through open market accumulation without paying all shareholders an appropriate control premium or giving the Board enough time to make informed decisions and take actions in the best interests of shareholders. ” According to an official press release,Â
“The Rights Plan does not exclude the Board from negotiating with parties or approving an acquisition deal if the Board feels it is in Twitter’s and its shareholders’ best interests,” it added.Â
Musk submitted an all-cash offer to buy a 100% stake in Twitter on Thursday for $43 billion, or $54.20 per share.
Musk stated in a statement to the Securities and Exchange Commission that Twitter had “amazing potential,” which he intends to realise.
“My offer is my best and final offer,” He added
, adding that if it isn’t accepted, he’ll have to reevaluate his position as a shareholder.Â
Edited By – Khushi Thakur
Published By – Mohd Faizan
