Andrew Freedman Quoted in WSJ, Bloomberg and The Deal Describing the Activist Pathways Available to Elon Musk
Andrew Freedman, Olshan Partner and Co-Chair of the firm’s Shareholder Activism practice, was quoted in the Wall Street Journal, Bloomberg, and The Deal (subscriptions required) describing the activist pathways Elon Musk has available to apply pressure on Twitter amidst his unsolicited takeover offer. In addition to reiterating his public interest and providing financing to acquire Twitter, Musk has a number of tactics and ways he can can dip into his “activist tool belt” to bolster his bid. In Bloomberg, Andy outlined the tender offer avenue Musk could pursue, “Even though Musk wouldn’t be able to close his tender offer, even with a majority of shares tendered, given the poison pill and other impediments, it’s a ‘put your money where your mouth is’ type move and shows he really wants to buy this company”. Due to the technical limitations associated with the tender offer, Andy provided a better solution for Musk in the WSJ and The Deal, “it is hard to get people to tender unless there is a clear path for a deal. A hostile tender is extended over time, and investors won’t want to put their shares into a never-ending loophole of not knowing whether they will be accepted or not….A vote no campaign against directors with your own proxy cards is a better strategy.” Andy also noted the possibility that Musk could simultaneously launch a board declassification campaign, “Why not run a referendum proxy campaign solely to approve the declassification of the board?....It could be used to show disappointment about the entrenched classified board, and it could help bolster his bid.” Nevertheless, Andy noted that if Musk “can get fairly widespread support this year, it also could force [Twitter]’s hand to negotiate with Musk earlier than they would like to or announce and run a sale process. All to avoid facing the music next year”.