Twitter Inc. is preparing to approve the sale of the company to Elon Musk for about $43 billion in cash, a price that Tesla Inc.'s CEO described as his "best and final" offer to the social media company, according to people familiar with the matter.

On the other hand, informed sources said Twitter may announce a deal at $54.20 per share later Monday once its board meets to recommend the deal to Twitter shareholders.

The sources added that it is always possible that the deal could fall apart at the last moment.

Musk, the richest person in the world according to Forbes statistics, is negotiating to buy Twitter in his personal capacity and Tesla is not involved in the deal.

Reuters also quoted sources on Monday saying that Twitter is preparing to approve the sale of the company to billionaire Elon Musk for about $43 billion in cash, a price which Tesla's CEO described as his "best and final" offer to the social media company.

The sources said Twitter may announce a deal at $54.20 per share later on Monday once its board meets to recommend the deal to Twitter shareholders.

The sources added that it is always possible that the deal could fall apart at the last moment.

Musk, the richest person in the world according to Forbes statistics, is negotiating to buy Twitter in his personal capacity and Tesla is not involved in the deal.

Twitter shares rose 4.5% in pre-market trading in New York on Monday to $51.15.

Musk said Twitter needs to become private to grow and become a true platform for free speech.

The deal will come just four days after Musk unveiled a financing package to support the acquisition.

This led the Twitter board to take the deal more seriously and many shareholders to urge the company not to let the opportunity slip away, Reuters reported on Sunday.

The sale would represent an acknowledgment from Twitter that Agrawal, who took office in November, is not generating enough momentum to make the company more profitable, despite being on track to achieve the company's ambitious financial goals set for 2023 higher than Musk's recently made offer in November.

Musk's negotiating tactics - making one offer and sticking to it - resemble how another billionaire, Warren Buffett, conducts acquisitions.

On the other hand, Musk did not provide any financing details when he first revealed his bid for Twitter, making the market skeptical about his prospects.