Tesla and SpaceX CEO Elon Musk at Tesla’s Gigafactory on March 22, 2022 in Grünheide, southeast of Berlin.
Patrick Pleul AFP | Getty Images
Elon Musk is investigating whether to launch a tender offer for Twitter, according to a new submission of securities.
In an update released Thursday, Musk said that due to a lack of response from Twitter, he is now examining a tender offer to buy some or all of the company’s shares directly from its shareholders.
Documents say Musk has received $ 46.5 billion in commitments to help fund the potential deal. Musk has secured about $ 25.5 in debt financing through Morgan Stanley Senior and other companies, and Musk said he has committed about $ 21 billion in equity financing. Other participating companies include Bank of America, Barclays, MUFG, Societe Generale, Mizuho Bank and BNP Paribas.
Musk has not yet decided whether to make a tender offer for Twitter or whether to take other steps to continue the offer, the documentation said.
Representatives of Twitter did not immediately respond to a request for comment.
Last week, Musk offered to buy Twitter for $ 54.20 a share, or about $ 43 billion. On Friday, Twitter adopted a shareholder rights plan of limited duration, often called a “poison pill,” in a bid to ward off potentially hostile takeovers.
Musk, who is the CEO of Tesla and SpaceX, has amassed more than a 9% stake in the company in recent weeks. Twitter then offered Musk to join the board, but on the condition that Musk could not buy more than 14.9% of the company. Musk reversed the course and instead offered to make Twitter private.
CNBC’s David Faber explained in “Squawk on the Street” that Musk will not be able to finalize a tender offer for Twitter with the protection against poison pills.
“You have to negotiate with the board,” Faber said. “This is yet to happen.”
Musk first teased a tender proposal on Monday when he posted a mysterious tweet that said “Love me tenderly.”
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