Twitter Will Hold a Shareholder Vote on Elon Musk’s $44 Bn Offer in September

A majority vote in favour of the deal is one of the closing conditions stated in the agreement.

Twitter demanded that Elon Musk complete his proposed $44 billion acquisition of the company.

(Photo: Altered by The Quint)

Twitter will hold a shareholders meeting on 13 September this year to take a vote on Elon Musk's $44 billion offer to acquire the platform.

This comes after Musk, on 8 July, said he was backing out of the deal, accusing Twitter of making "false and misleading representations" about how many bots were on its platform.

Twitter sued him four days later in a Delaware court and a trial, expedited at the platform's request, is scheduled for October. The results of the vote will be in before the trial commences.

Vote in Favor, Board Suggests

Twitter's board, which wants to force Musk to buy the company, has asked shareholders to vote in favour of the transaction. A majority vote in favour of the deal is one of the closing conditions in the agreement, without which the deal is invalid.

"Today, we filed a definitive proxy statement in connection with the Special Meeting of Stockholders to approve the proposed acquisition of Twitter by affiliates of Elon Musk. The Twitter Board of Directors recommends that stockholders vote in favor of the transaction," the filing says.

If the deal is completed, Twitter shareholders will be entitled to receive $54.20 in cash for each common share they own (a premium of 38 percent to the closing price on 1 April), Twitter said.

At the meeting, shareholders will also be asked to vote on a proposal to approve the compensation that may be payable by Twitter to executives in connection with the buyout, the platform added.

Twitter appears to have the upper hand, going into this trial.

The judge presiding over the case, Kathaleen McCormick, has a record of siding with the sellers and has previously forced a buyer to follow through with their acquisition in a similar case.