Will Elon Musk be able to buy Twitter? In any case, now the boss of Tesla would have the necessary funding to make a proposal. As CNBC reports, in a new document filed with the US regulator, Musk indicates that it has received commitments of $46.5 billion to fund a potential acquisition of the social network.
Of that $45.6 billion, $25.5 billion would have been raised through debt, while the $21 billion would have been raised through equity financing. Participating companies include Morgan Stanley, Bank of America, Barclays, MUFG, Societe Generale, Mizugo Bank and BNP Paribas.
Elon Musk: funding found!
At this time, according to CNBC, Musk has not yet determined whether he wishes to make a public offering or whether he will take further steps to move the proposal forward. For its part, Twitter has already reacted.
“As previously announced and communicated directly to Mr. Musk, the Board of Directors is committed to conducting a careful, comprehensive and deliberate review to determine the course of action that it believes to be in the best interests of the Company and of all Twitter shareholders”said the spokesperson for the company, quoted by the American media.
As a reminder, after buying more than 9% of Twitter shares, Elon Musk became its main shareholder. Subsequently, the company offered him to join the board of directors.
An offer that Musk first accepted, before changing his mind. Indeed, if he had joined this board of directors, he would have undertaken not to hold more than 14.9% of the company’s shares. Instead of joining this board of directors, the boss of Tesla now wants to buy 100% of Twitter, and take the social network out of Wall Street.
Will Elon Musk achieve his goal?
For now, it’s quite complicated. Indeed, the board of directors is resisting.
Indeed, a few days ago, this council unanimously adopted a measure that will not make it easier for the boss of Tesla. Called the “poison pill”, this measure aims to protect the company against hostile takeovers.
As a statement from Twitter explains, this plan activates if an entity acquires more than 15% or more of the shares. It would then allow other shareholders to buy shares at a reduced price.
“The Rights Plan is intended to allow all shareholders to realize the full value of their investment in Twitter. The rights plan will reduce the likelihood that any entity, person or group will obtain control of Twitter through open market accumulation without paying all shareholders an appropriate control premium or without giving the board sufficient time to make informed judgments and take actions that are in the best interest of shareholders”explains the press release.
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