https://ift.tt/M5ZsoJp Musk Considering Tender Offer With Potential Financing in Twitter Takeover

• The board would be bypassed in a tender offer by Musk.
• The board adopted “Poison pill” defences last week, making a takeover impossible.

Elon Musk claims to have secured $46.5 billion in finance for the purchase of Twitter and is now in talks with the firm. Tesla CEO Elon Musk revealed last week that he would pay $54.20 per share, or around $43 billion, for the social media giant. The transaction was to be paid somehow, but he didn’t specify how.

According to paperwork filed with US securities authorities, Elon Musk, CEO of Tesla, announced Thursday that he is considering a “tender offer” to purchase all of Twitter’s common stock for $54.20 per share in cash. The board would be bypassed in a tender offer by Musk, who now holds around 9% of Twitter’s shares.

New Information on Potential Financing

However, Musk hasn’t yet decided on whether or not to do so. According to records filed with the Securities and Exchange Commission (SEC), Twitter Inc., located in San Francisco, has not replied to Musk’s bid. However, according to a statement released by Twitter on Thursday, the company has received “new information on potential financing” from Musk’s revised proposal.

The board adopted “Poison pill” defences last week, making a takeover impossible.Morgan Stanley and other financial firms would provide the funding. Barclays, Bank of America, Societie Generale, Mizuho Bank, BNP Paribas, and MUFG are among the other banks participating. Vanguard Group and Elon Musk are the other two largest owners of Twitter.

Although he didn’t indicate where the money would come from. Musk had $13 billion in financing from Morgan Stanley, and the other banks, $12.5 billion in loans would be backed by Tesla stock, and he had pledged $21 billion in equity, “directly or indirectly” from him. But, according to a document, additional debt or contributions from others might lessen the equity commitment.