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Manufacturing & engineering

Twitter board recommends shareholders support Musk's US$44bn offer 

The mega-deal still has major hurdles to overcome if it is to be successful

Twitter Inc (NYSE:TWTR)'s board of directors urged shareholders to accept Elon Musk's $44bln takeover of the social media group.

According to a regulatory filing with the US Securities and Exchange Commission, the board said it "unanimously recommends that you vote (for) the adoption of the merger agreement".

Twitter will hold a special shareholder meeting to vote on the deal - one of the many steps needed for the deal to close.

The board said staying independent or looking for a different suitor was not likely to be more beneficial for shareholders.

Investors in the company would profit US$15.22 for each share if the deal closed now, AP reported.

Shares in Twitter closed 3% higher at US$38.91 in the US last night.

Musk said Tuesday several "unresolved matters" remain before he is able to move forward with his takeover deal.

Addressing the Qatar Economic Forum, Musk said he has yet to confirm the actual number of bots on the platform.

Tesla Inc (NASDAQ:TSLA) chief Musk has previously said he is entitled to conduct his own survey of spam accounts and claims more than 5% of accounts on Twitter are so-called "bots".

"Based on Twitter’s behaviour to date, and the company’s latest correspondence in particular, Musk believes the company is actively resisting and thwarting his information rights," Musk’s lawyer Mike Ringler said in the letter.

"This is a clear material breach of Twitter’s obligations under the merger agreement and Musk reserves all rights resulting therefrom, including his right not to consummate the transaction and his right to terminate the merger agreement," it added.

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