New documents show Musk is investigating a bid to take over Twitter, with a large loan from Morgan Stanley and others to fund the deal.
Elon Musk is now considering making an offer to buy some or all of Twitter’s shares in a bid to take control of the social media company and eventually make it private.
According to a new filing with the U.S. Securities and Exchange Commission (SEC) released today (April 21), Musk is offering to make a public offer — an offer to buy some or all of the stock of a publicly traded company. to buy at a premium. via Twitter. He also appears to have the money ready for the purchase — all $46.5 billion.
Some of the money ended up in Musk’s hands in the form of a $12.5 billion loan from investment bank Morgan Stanley, according to documents titled Project X, with roughly the same amount from certain other companies, including Bank of America, Barclays and BNP Paribas.
Since the beginning of April, a lot has developed between Musk and Twitter. First, he became one of the company’s biggest stakeholders, with plans to install him on the board of directors. However, these plans fell apart, after which Musk offered to buy the company and delist it.
With the Twitter board not responding to his offer, Musk is now considering his options with the takeover offer, although it has not yet been confirmed whether he will go through with it.
Twitter, on the other hand, does not want to get into the hands of the founder of Tesla and SpaceX. Last week, the board of directors announced that the company was adopting a limited-term shareholder rights plan — dubbed a “poison pill” — to prevent Musk from taking control.
“The Rights Plan is designed to enable all shareholders to realize the full value of their investment in Twitter,” the board said in a statement.
†[It] will reduce the likelihood that an entity, person or group will gain control of Twitter through accumulation of the open market without paying all shareholders an appropriate control premium or without giving board sufficient time to make informed decisions and take actions that are in the best interest of the shareholders. †
Last week, a Twitter shareholder sued Musk for failing to immediately disclose that he had bought a significant stake in the company.
Musk had been buying shares since January and had gained 5 percent by March 14, meaning he had to notify the SEC before March 24. However, the lawsuit document states that Musk continued to accumulate stock before notifying the SEC.
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Elon Musk at Web Summit 2013. Image: Dan Taylor/Heisenberg Media via Flickr (CC by 2.0)