Elon Musk appeared to hint at a possible tender offer for Twitter (NYSE:TWTR) in a tweet on Saturday.
Musk tweeted “Love Me Tender” in a cryptic tweet on Saturday that is not only a famous Elvis Presley song but also may refer to a potential tender offer directly to shareholders he could make for the social media platform that he offered to buy for $43 billion on Thursday.
The Musk tweet comes after Twitter (NYSE:TWTR) on Friday announced it adopted a shareholder rights plan – a “poison pill” designed to keep control in the company from being consolidated in the wake of Musk’s surprise effort to take control of the company. The board unanimously adopted a poison pill that’s exercisable if any one entity acquires beneficial ownership of 15% or more of Twitter common stock in a transaction unapproved by the board.
While Twitter (TWTR) told employees at an all-hands meeting on Thursday that it’s evaluating Musk’s $54.20 share offer, according to a Verge report, The Information also reported that the Twitter board viewed Musk’s bid as unwelcome, suggesting it would likely reject it.
It’s possible that Musk may see a tender offer, where the buyer goes directly to shareholders requesting that they tender their shares at a specific price, as a potential way around a possible board rejection or as a way to get around a poison pill.
Musk said at a TED conference on Thursday that he had “sufficient” assets to buy Twitter and he could “technically” buy the social media platform. Musk added that he has an alternative plan if his bid is rejected by Twitter (TWTR), though he declined to elaborate.
On Saturday, there were media reports that Musk is said to be talking to investors who would partner with him on an offer for Twitter. A new plan involving partners could be announced within days, according to a NY Post report.
Along with Musk, private-equity firm Thoma Bravo is reported to be taking a look at a rival bid for Twitter (TWTR).