Twitter board’s interest not aligned with holders, Musk says

The economic interests of Twitter’s board are not aligned with shareholders, Elon Musk said Saturday after the social media company took steps to ward off his takeover attempt.

The billionaire was responding to a tweet about board members’ stock holdings, saying that with the departure of Jack Dorsey, the board “collectively owns almost no shares.”

Twitter on Friday set up a shareholder rights plan that could thwart Musk’s acquisition bid. The plan is exercisable if a party acquires 15 per cent of the stock without prior approval and seeks to ensure that anyone taking control of Twitter through open market accumulation pays all shareholders an appropriate control premium.

Responding to a subsequent tweet by a user about whether the plan could amount to “criminal negligence,” Musk said the plan could be “more of a concern about other potential bidders” instead of “just” him.

Since making the offer, Musk has been actively posting on his Twitter account in what appears to be a social media campaign to sway public opinion in favour of his bid.

The Tesla co-founder on Thursday tweeted that the board risks liability if it acted against shareholders. He has also thanked followers who voted in online polls supporting his bid.

In response to tweets about board members who could make or break a firm, Dorsey said “it’s consistently been the dysfunction of the company.”