Twitter: a 'truce' with Elliot activist fund
(CercleFinance.com) - Twitter announced on Monday that it has reached an agreement with the activist fund Elliott Management, by which the latter now undertakes to cooperate with the microblogging site's management.
The three-way agreement will be accompanied by a 1 billion dollar investment from the technology fund Silver Lake, a sum that should be used to launch a share repurchase program for two billion dollars, Twitter says.
Jesse Cohn, a partner at Elliott, is also expected to join the San Francisco-based group's board of directors, along with Egon Durban, co-CEO and managing partner of Silver Lake.
Press rumors say that Elliott - with its 4% stake in Twitter - has, for several weeks, been calling for the resignation of group founder and CEO Jack Dorsey for several weeks, whom it accused of preventing the company from realizing its full potential.
If he saves his place in charge of the group, Dorsey will now have to comply with a "regular assessment" of the company's structure led by a special committee on the board of directors.
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