Twitter's board has "no choice" but to reject Elon Musk's offer to buy the company at $54.20 per share, according to CNBC's Jim Cramer.
"They have no choice but to reject it," Cramer said Thursday on "Squawk on the Street." "If they say, 'we accept,' they're phony. And they're not phonies."
"The Twitter Board of Directors will carefully review the proposal to determine the course of action that it believes is in the best interest of the Company and all Twitter stockholders," the company said in a statement Thursday in response to the offer.
Cramer also warned of potential "personal liability" if the board accepts Musk's offer, which would value the company at around $43 billion.
"This is one of those where they are literally not doing their job, there's no fiduciary responsibility if they just say, 'you know what, we take it,'" Cramer said. "There are times when individual directors are opened up for a level of lack of fiduciary that I think crosses the line. This crosses the line."
A Twitter spokesperson said the company had no additional comment on Musk's offer.
WATCH: Elon Musk decides not to join Twitter's board of directors
