Twitter's drop to lowest since IPO may lure takeover offers

Twitter Inc. management's tough talk may be turning the company into a takeover target.

Shares slumped 5.6 percent on Monday to $29.27, the lowest price since the company's November 2013 initial public offering. The move pushed Twitter below $20 billion in market value, making it more attractive to potential acquirers like Google Inc., investors said.

"Sometimes a dip in trading price of a stock can be a triggering event for deeper M&A discussions," said Ted Hollifield, co-head of the venture and merger and acquisition practice at Alston & Bird LLP in Menlo Park, California. He holds Twitter stock personally.