One of the few ways in which Twitter can avoid Elon Musk taking over the company is to find a friendly investor or a “white knight,” according to tech analyst, Dan Ives.
Businessman Musk has offered to buy Twitter at $54.20 per share in cash, which would amount to $43 billion.
Ives noted that the “tender offer” made by Musk is an “alternative way to put pressure on the board” after the company announced it was adopting a limited duration shareholder rights plan, a tactic known in the financial world as a “poison pill” to fend off Musk’s potential buyout.
Effectively, the move makes it more financially challenging for the potential acquirer, hinting at the board’s opposition to Musk’s bid.
“In the next 48 to 72 hours, they are either going to have to officially decline the bid or come up with a second offer,” Ives said.
According to Fortune, Elliott Investment Management, a hedge fund that already counts itself as a Twitter, PayPal, and software company Oracle shareholder, could be a potential white knight option for Twitter.
Earlier this month, billionaire investor Mark Cuban suggested that Twitter might be communicating with a potential white knight to buy out the company.
Musk has secured $25.5 billion in debt financing from Morgan Stanley and other financial institutions, including Bank of America, Barclays, and Mizuho, according to Thursday’s regulatory filing. He has also committed to providing $21 billion in equity financing,
The richest man in the world is seeking to negotiate a “definitive agreement” with the board for the acquisition of Twitter.
However, Twitter “hasn’t responded to the proposal,” the document states. “Given the lack of response by Twitter,” Musk is “exploring whether to commence a tender offer to acquire all of the outstanding shares” at a price of $54.20 per share.
He “has not determined whether to do so at this time,” the filing states.
The Epoch Times reached out to Twitter and a Musk spokesperson for comment but received no response.
