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Most Twitter shareholders vote in favor of sale to Musk -sources

Stock Markets Sep 12, 2022 06:16PM ET
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© Reuters. FILE PHOTO: Elon Musk's Twitter profile is seen on a smartphone placed on printed Twitter logos in this picture illustration taken April 28, 2022. REUTERS/Dado Ruvic/Illustration
 
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By Svea Herbst-Bayliss

(Reuters) -A majority of Twitter Inc (NYSE:TWTR)'s shareholders have voted in favor of the social media company's $44 billion sale to Elon Musk, people familiar with the tally said on Monday.

The deadline for the shareholder vote on the deal is Tuesday but enough investors had voted by Monday evening for the outcome to be certain, the sources said.

The sources requested anonymity ahead of an official announcement. Twitter and representatives for Musk did not immediately respond to requests for comment.

Musk has informed Twitter he will not go ahead with the acquisition, arguing he was misled over the spam accounts on the platform and was not notified of a pay settlement the company reached with one of its top executives. The two sides are scheduled to battle it out in court next month.

Shareholders were widely expected to vote in favor 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."

Last week, lawyers for Musk said Twitter's failure to seek his consent before paying $7.75 million to whistleblower Peiter Zatko and his lawyers violated the merger agreement, which restricts when Twitter could make such payments.

Zatko, who was fired by Twitter 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 defenses against hackers and spam accounts.

The whistleblower will meet the U.S. Senate Judiciary committee on Tuesday to discuss the allegations.

"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," Wedbush analysts wrote in a note.

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 (NASDAQ:TSLA) Inc, were not immediately available for comment.

Most Twitter shareholders vote in favor of sale to Musk -sources
 

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Comments (2)
ROB Stone
ROB Stone Sep 12, 2022 1:35PM ET
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He will not have to purchase Twitter. He is doing a smart thing by exposing Tech fraud. Companies inflate users with Bot accounts and charge advertising based on those fake numbers. What a scam!!!
gab nea
gab nea Sep 12, 2022 6:48AM ET
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he may be a nerd but he is not a good business manager! uses whistleblower and accusations to end a deal he signed without due diligence, pitiful!
 
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