Musk says he has $46.5B in financing ready to buy Twitter
Elon Musk says he has lined up $46.5 billion in funding to buy Twitter, and hes attempting to negotiate an agreement with the companyBy TOM KRISHER and MATT OBRIEN AP Business WritersApril 21, 2022, 3:36 PM – 3 minutes readShare to FacebookShare to TwitterEmail this articleElon Musk says he has lined up $46.5 billion in financing to purchase Twitter, and hes trying to work out an agreement with the company.Last week, Musk announced an offer to buy the social media company for $54.20 per share, or about $43 billion. At the time, he did not state how he would fund the acquisition.The Tesla CEO stated Thursday in documents filed with U.S. securities regulators that hes exploring whats called a tender deal to buy all of the social media platforms common stock for $54.20 per share in cash. Under a tender offer, Musk, who owns about 9% of Twitter shares, would take his offer directly to other investors, bypassing the board.But Musk hasnt chosen yet whether to do that.The documents submitted with the Securities and Exchange Commission state San Francisco-based Twitter Inc. has actually not responded to Musks proposal.Twitter stated in a declaration Thursday that it has actually received Musks upgraded proposal and its “brand-new details on prospective funding.”The business stated its board is “committed to conducting a mindful, thorough and deliberate review to figure out the course of action that it believes remains in the best interest of the company and all Twitter investors.”Last week Twitters board adopted a “poison pill” defense that might make a takeover attempt excessively expensive.The filing states that “entities related to (Musk) have actually received dedication letters dedicating to supply an aggregate of approximately $46.5 billion.”The funding would originate from Morgan Stanley and other banks. Other banks involved include Barclays, Bank of America, Societie Generale, Mizuho Bank, BNP Paribas and MUFG. Morgan Stanley is among Twitters most significant shareholders, behind Vanguard Group and Musk.Musk said that $13 billion in funding originated from Morgan Stanley and the other banks, as much as $12.5 billion would be loans protected by his Tesla stock, and committed $21 billion in equity, “straight or indirectly” from him, although he didnt say what the source of those funds would be. The filing says that the equity dedication might be reduced by contributions from others or additional financial obligation taken on.A Delaware corporation named X Holdings 1 was formed at the direction of Musk and some affiliates who mean to “get, straight or indirectly, all of the exceptional equity interests of, or straight or indirectly combine with Twitter Inc.,” according to a funding dedication letter the business submitted.Shares of Twitter increased slightly to $46.86 in Thursday morning trading after the financing became public. The share price is $7.34 listed below Musks offer.Musk “is looking for to negotiate a conclusive arrangement for the acquisition of Twitter … and is prepared to begin such settlements right away,” the files say.With a tender deal, Musk would attempt to get other shareholders to promise their stock to him at a particular cost on a certain date. If adequate investors agree, Musk could use that as take advantage of to get the board to drop the poison pill defense.Musk signified the possibility of a tender deal numerous times this week in tweets using the word “tender.”——– Tali Arbel contributed from Phoenix. Krisher reported from Detroit. OBrien reported from Providence, Rhode Island.