Twitter Keeps Elon Musk Ally Egon Durban on Board, Rejects Resignation

Twitter Inc said in a filing Friday that it would not accept Egon Durban’s resignation from its board of directors, two days after shareholders blocked his re-election at an annual meeting.

Durban is an ally of Elon Musk, who offered to take Twitter private in a $44 billion deal.

Twitter said Durban failed to secure the support of a majority vote in the re-election held earlier this week due to “the voting policies of certain institutional investors regarding board service limitations”.

Twitter said Durban, which serves on the boards of six other companies, has agreed to reduce its board service commitments to no more than five public company boards by May 25, 2023.

The social media company added that Durban was an “active member” of the board of directors and brings “unparalleled operational knowledge to the industry.”

Wednesday’s vote against the re-election may signal skepticism among shareholders about Musk’s plan or his willingness to pay what he has offered, but investors are expected to overwhelmingly approve the deal at another yet-to-date meeting.

Silver Lake Partners, where Durban is the co-CEO, helped assemble Musk’s $44 billion acquisition of Twitter. In 2018, Silver Lake offered to help finance Musk’s planned $72 billion bid to acquire electric car maker Tesla.

Musk tweeted on May 13 that the Twitter deal was “temporarily on hold” as he sought more information about the percentage of fake accounts on Twitter.

Separately, the US Securities and Exchange Commission said Friday it was looking into Musk’s disclosure of his stake in Twitter in April.

Shares of Tesla Inc, where Musk is CEO, is up about 5%, while Twitter is up slightly in early trading.

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