Twitter Set To Accept Elon Musk’s $43 Bln Takeover Offer: Reports
Social media giant Twitter Inc. (TWTR) is reportedly set to accept Elon Musk’s buyout offer of $43 billion in cash.
According to reports, Twitter may announce a deal later on Monday once its board has met to recommend the $54.20 per share offer to its shareholders, which the CEO of Tesla Inc. (TSLA) had called his “best and final” offer for the company.
Meanwhile, the reports says that Twitter has not been able to include a “go-shop” provision under its agreement with Musk, which will allow the company to seek other competing bids from potential suitors.
Last Thursday, Musk said he is exploring whether to commence a tender offer for Twitter, as the social media company has not responded to an earlier proposal.
In an SEC filing, Musk revealed that he has received commitments for $46.5 billion to help finance the potential deal. Musk secured about $25.5 billion in debt financing through Morgan Stanley Senior Funding and other firms, and he said he has committed about $21 billion in equity financing. The other participating firms are Bank of America, Barclays, MUFG, Societe Generale, Mizuho Bank and BNP Paribas.
Musk had offered to acquire Twitter for $54.20 per share or about $43 billion.
“Twitter needs to be transformed as a private company. As a result, I am offering to buy 100% of Twitter for $54.20 per share in cash, a 54% premium over the day before I began investing in Twitter and a 38% premium over the day before my investment was publicly announced. My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder,” Elon Musk stated.
Twitter shares are currently trading up $2.67 or 5.46% at $51.60, after opening the day’s trading at $51.02.
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