Elon Musk said he has allocated $ 46.5 billion in funding to buy Twitter and is looking to negotiate a deal with the company.
Last week, Musk announced an offer for the social media company for $ 54.20 per share, or approximately $ 43 billion. Then he did not say how he would finance the purchase.
Tesla’s chief executive said Thursday in Documents Filed with U.S. Securities Regulators That He Was Exploring What Was Known As An Offer To Buy All The Total Shares Of The Social Media Platform For $ 54.20 A Share cash . According to the offer, Musk, which owns approximately 9% of Twitter’s shares, will pass his offer directly to other shareholders, who will bypass the board.
But Musk has not yet decided whether to do so.
Documents filed with the Securities and Exchange Commission say Twitter Inc., based in San Francisco, did not respond to Musk’s proposal.
Last week, Twitter’s board of directors received “poison pill” protection that could make the ban more costly.
The statement states that “Musk-related entities have received letters of commitment that must provide a total of approximately $ 46.5 billion.”
Funding came from Morgan Stanley and other financial institutions. Some will come with shares Musk holds in Tesla, a manufacturer of electric and solar panels. Other banks include Barclays, Bank of America, Societie Generale, Mizuho Bank, BNP Paribas, and MUFG.
Twitter shares fell slightly to $ 46.69 in trading on Thursday morning after public funding. The share price is $ 7.51 less than Musk’s offer.
“Musk is trying to negotiate a final deal to buy Twitter … and he’s ready to start such conversations right away,” the documents said.
In the offer, Musk will try to force other shareholders to pledge his shares at a certain price on a certain date. If enough shareholders agree, Musk could use this as leverage to help the board refuse to protect itself from toxic pills.
Musk hinted at the possibility of bidding several times this week using the word “tenderness” on Twitter.
Source: Huffpost
