On Wednesday, Twitter investor Ince blocked the re-election of Elon Musk’s ally to the board. The development took place at an annual meeting.
Investors voted against Egon Durban, the co-head of private equity firm Silver Lake, who partnered with Tesla CEO Musk over his scrapped bid to take the electric carmaker private.
The rebuke from Durban, who joined the board in 2020, comes amid uncertainty over the deal.
Musk previously said via a tweet that the Twitter deal was “temporarily suspended.” He asked for more information on the proportion of fake accounts on Twitter.
The company said last week it remained committed to the deal at the agreed price and said Wednesday it would not take questions about the deal during the virtual meeting.
“Twitter’s board hasn’t embraced Elon Musk and his vision for Twitter. So it’s no surprise that his ally was removed from the board,” said Kim Forrest, chief investment officer. at Bokeh Capital Partners in Pittsburgh.
When Musk offered the $44 billion price to acquire Twitter, the social media giant’s board initially sought to adopt a “poison pill” strategy that would limit Musk’s ability to increase his stake in Twitter. However, the board then unanimously accepted his takeover offer.
Wednesday’s vote to block Durban’s re-election could signal shareholder skepticism about Elon Musk’s willingness to pay what he has offered.
However, another meeting has been scheduled and investors are expected to overwhelmingly approve the deal.
(With agency contributions)