Twitter CFO discloses pre-arranged sale of 5,000 shares, 2 days before Musk made his buyout bid public

Twitter Inc. disclosed that Chief Financial Officer Ned Segal sold 5,000 shares in the social media company, representing less than 1% of his holdings, two days before Elon Musk went public with his buyout proposal. In a Form 4 filing late Thursday, Twitter said that on April 12, Segal sold 5,000 shares in the open market at $47.14, raising $235,700, as part of a prearranged Rule 10b5-1 trading plan adopted by Segal. The stock had traded that day in a range of $44.44 to $47.55 before closing down 5.4% at $44.48. Two days later, Tesla Inc. Technoking Musk said he delivered a letter to Twitter on April 13 containing a buyout bid of $54.20 a share, sending the stock up to an intraday high of $48.50 on Thursday before reversing course to close at $45.08. After the sale of shares, the Form 4 filing showed that Segal still owned 522,129 Twitter shares, which would be valued at about $23.54 million at Thursday’s closing price. Twitter’s stock has dropped 37.1% over the past 12 months, while the S&P 500 has gained 5.3%.

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