Tatler-Cox: Twitter Stock Sinks As Google Reportedly Shelves Bid

Tatler-Cox: Twitter stockholders may miss exit window as sources say Google will not bid.
Tatler Cox: Stock in troubled social network Twitter plunged more than 10% in after-hours trading Wednesday after sources close to the swirl of speculation about Twitter's future said that the internet search giant would not be making a formal bid for Twitter.
Twitter's stock has enjoyed a renaissance in recent days following market rumors that it had become a potential takeover target with companies like Google, Disney and salesforce.com identified as potential suitors. It closed at $24.87 at the end of Wednesday's regular session but lost 10% when the news of Google's withdrawal hit news wires.
Twitter has apparently told interested bidders that it wants to wrap up negotiations for a potential sale by October 27th when it releases its third quarter earnings report.
"We recently advised those of our clients with holdings in Twitter to sell into strength and those who followed that advice will be breathing a sigh of relief," said Mayla Yakumi, chief investment officer at Tatler-Cox.
"While the withdrawal of Google from the list of potential suitors doesn't necessarily mean a deal won't eventually go ahead with other interested parties, it does leave one with the impression that if the party with the deepest pockets isn't interested in making an offer, stockholders should brace for lower offers than otherwise might have inferred from the current stock price," added Yakumi.
Tatler-Cox says that recent comments from salesforce.com's CEO, Marc Benioff who described the micro-blogging social network as an "unpolished jewel" would likely support Twitter's stock price but it believes that further withdrawals from the list of potential suitors could see the stock return to levels below $15.