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That's correct - his offer is not hostile. If they reject it, he could attempt a hostile takeover by buying up enough stock to install his own board.
by zwily 5y ago
That's correct - his offer is not hostile. If they reject it, he could attempt a hostile takeover by buying up enough stock to install his own board.
- Maursault 5y agoI think you're right, but you almost nailed it. Musk low-balled because he wants the offer to be rejected, so the stock price dips, so he can buy up enough stock at discount for a hostile takeover.
- daenz 5y agoThat's pretty brilliant. He's in a win-win situation, it seems like.
- zwily 5y agoSo far he's played it all perfectly. No matter how it ends up, fascinating drama to watch.
- kbenson 5y agoIs it brilliant, or is it standard operating procedure for stuff like this? I would assume most hostile takeovers follow some similar path and also try to manipulate the stock a bit in a way favorable to themselves with their actions prior to the actual final takeover attempt.
- daenz 5y agoThat's fair. I've never followed something like this before, but what you say makes sense.
- systemvoltage 5y agoI think the brilliant part was where he got 1M+ responses to his polls about the problems with Twitter. The timing for that prior to rejecting the board seat was pre-meditated brilliancy.
- paparush 5y agoAgreed. It's just another example of his incessant market manipulation.
- jquery 5y agoMarket manipulation isn’t brilliant, it’s gross.
- chippiewill 5y agoThe offer is hostile because he made the offer at the same time he announced his intention to buy the company and he did it publicly.
- singlow 5y agoBut that is the opposite of hostile. He made an offer to the board and he did it publicly. If it were a hostile takeover he would buy enough shares to elect his own board.