As Elon Musk teases a "Plan B" in the event his $43 billion offer to buy Twitter gets rejected, former SEC Chairman Harvey Pitt cautioned the Big Tech giant isn’t the only organization that can stop this deal from happening.
"But I think the danger that the government or Congress might intercede in order to prevent this takeover is a very real threat," he continued.
Just days after announcing plans to acquire complete ownership of Twitter for $54.20 per share, the Tesla founder and CEO said he’s unsure if the company will accept the offer in a TED2022 interview Thursday. But Musk has created "certain difficulties" for himself, according to Pitt.
"This latest effort sort of proves that he acquired his shares but filed the wrong form. When he filed the correct form, he filed it late," Pitt explained. "Those filings are important. There were shareholders who sold in the misguided belief that he was just the passive investor when in fact, he's not."
Pitt also questioned the validity of Musk’s all-cash offer.
"If it's real, then I think that there is a serious argument to be made that this is something that the board will have to consider fairly," he noted.
But Pitt believes Musk finds himself on the Twitter board’s bad side.
"My own view is that, after Musk attacking the board, they will find all sorts of reasons to claim this offer is not in the best interests of Twitter's shareholders," Pitt admitted.
After voicing doubt about the Biden administration’s intentions, the former SEC chairman even remained skeptical about federal agencies’ hand in the Musk-Twitter deal.
"The folks at the FCC are apolitical and at least their enforcement division is," Pitt pointed out, "and I would expect them to proceed in a more professional manner."