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Getting Funded – No, Elon Musk promises. funds secure.
Musk, who was once famous for joking around about the privatization of a publicly traded company, is trying to convince Twitter investors on Thursday of his intention to buy the company. In his new SEC filing, he said he would fund a $43 billion offer on Twitter through a combination of Morgan Stanley debt and equity financing, which he will donate. Musk said he had raised $46.5 billion overall, giving him some cushion to work on.
By adopting a poison defense last Friday, the Twitter board signaled that Musk’s proposal was not very interested. So Musk will need the support of Twitter shareholders to make it happen.
They are not for sale yet. Twitter shares rose 0.4% on Thursday to $47.08, well below Musk’s $54.20 a share. Shares have risen since Musk announced the takeover a week ago, but there is still a gap between the current share price and Musk’s offer. Or maybe they don’t want him. It’s probably a combination of the two.
It is important for Musk to gain broad shareholder support. Poison and the board’s reluctance to engage with him means that the next step is a formal public offering. In such a deal, Musk will ask shareholders to sell their shares. This move is a long-standing tactic by investors who face stubborn resistance from companies that want to buy from investors who have placed unwanted bids.
You can get funds. Shareholder support? not really.
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