Elon Musk gathers $46.5Bn funding for a potential Twitter bid
Category: #headlines  By Pankaj Singh   Date: 2022-04-23
  • share
  • Twitter
  • Facebook
  • LinkedIn

Elon Musk gathers $46.5Bn funding for a potential Twitter bid
  • Tesla CEO is pouring $21 billion out of his own pockets into the $46.5Bn package
  • Musk is also raising an additional $12.5 billion through a margin loan for his shares in Tesla
  • He currently owns 9.2% shares in the social media platform

Elon Musk has reportedly raised $46.5 billion in financing - $21 billion of the total is contributed by Musk himself - to back a possible hostile bid for Twitter. 

Beyond the equity, Musk is also infusing into the offer an additional $12.5 billion with a margin loan secured on the basis of his shares in Tesla – the electric automaker run by Musk as the CEO of the company.

The remaining $13 billion of the package is being contributed by American investment bank Morgan Stanley, which ranks among the top financial institution.

As per the document, Musk – the richest man in the world – is now eyeing the potential opportunity, assessing whether to draft a tender for the Twitter shares that are currently not owned by the Tesla CEO, excluding the 9.2% of the social media platform that he already owns.

Last week, Elon Musk announced a bid for $54.20 for each share of Twitter.

Typically, a tender offer is recognized as a hostile bid that steers clear of the company’s board and in a conventional takeover scenario would make propositions to stakeholders. However, in this case, Twitter’s board seems to have blocked Musk from expanding his shares without approval.

Imperative to note that, after Musk presented his bid, Twitter deployed a “poison pill defense” to restrict the maximum stake of Musk on the social media platform to go beyond 15%.

While unfortunate for the tech enthusiast, the tactic is allowing Twitter’s existing investors to purchase shares at massive, discounted prices, preventing unwanted attempts towards increasing the stake above 15% without the company board’s approval.

Despite the company board’s aim to dilute the shareholding of uninvited bidders like Musk, several shareholders in support of Musk’s approach allow for the chances that the board may succumb to pressures and drop the poison pill gambit.

Source Credit: https://www.theguardian.com/technology/2022/apr/21/elon-musk-twitter-secures-fund-possible-hostile-bid-tesla

  • share
  • Twitter
  • Facebook
  • LinkedIn


About Author

Pankaj Singh    

...

Read More

More News By Pankaj Singh

Johnson & Johnson to pay $9Bn to settle baby talcum powder lawsuits
Johnson & Johnson to pay $9Bn to settle baby talcum powder lawsuits
By Pankaj Singh

Johnson & Johnson, the US-based pharmaceutical and consumer packaged goods company, has reportedly proposed to pay nearly $9 billion to settle tens of thousands of claims in North America alleging that its baby powder as well as other talc-based ...

EV maker Lucid to slash 1300 jobs for restructuring in a bid to reduce costs
EV maker Lucid to slash 1300 jobs for restructuring in a bid to reduce costs
By Pankaj Singh

Lucid, the well-known U.S.-based electric car manufacturer, has reportedly planned to slash around 1300 jobs, nearly 18% of its workforce as a part of a broader restructuring process to cut costs as it works on increasing the output of its Air luxury...

Singapore’s Kredivo Holdings first to raise $270M since U.S. bank’s fall
Singapore’s Kredivo Holdings first to raise $270M since U.S. bank’s fall
By Pankaj Singh

Kredivo Holdings, a fintech company based in Singapore, has reportedly overcome a downturn in the economy that has rendered it hard for several start-ups to acquire additional funds by raising nearly US$270 million in equity funding. The company, ...