Twitter's board is caught in a 'quagmire' ahead of annual shareholder meeting: Ives
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Twitter (NYSE:TWTR) is slated to hold its annual shareholder meeting on Wednesday and while the big topic will be Elon Musk's offer to buy the company, the board of directors is stuck between a rock and a hard place, according to Wedbush Securities.
Analyst Dan Ives noted that following the recent spat between Musk and Twitter over the issue of spam bots on the platform, as well as Snap's (SNAP) "disaster quarter/warning," the board does not have an easy answer on how to proceed.
"We also believe with major market pressure for tech stocks, coupled with Snap's disaster quarter/warning after the market, Twitter's Board is caught in a quagmire as accepting a lower bid price for Musk would be a much better alternative in our opinion rather than a standalone status (while trying to fight Musk in court over his exiting stage left) with debatable DAU metrics abound in the eyes of the Street hanging over the story," Ives, who covers Tesla (TSLA), wrote in a note to clients.
Twitter (TWTR) shares fell more than 3.5% to $36.47 in premarket trading on Tuesday.
Last week, Twitter (TWTR) issued a filing, stating that is "committed to completing the transaction on the agreed price and terms as promptly as practicable." 
Separately, at a recent company meeting, Twitter (TWTR) executives reiterated that the deal would not be renegotiated.
Even though the company has publicly stated the offer price of $54.20 per share in cash is not going to be renegotiated, Ives believes that deal is "out the window" and Musk could either walk away from the deal and pay the $1 billion breakup fee. 
Additionally, he could try to pay a lower price, likely somewhere in the "mid $40's in the eyes of the Street," Ives added. 
Earlier this month, Wedbush said there is a 60% chance that Musk just walks away from the deal to buy Twitter (TWTR).