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Elon Musk is exploring the possibility of submitting a tender offer on Twitter. A filing released Thursday says Musk has received commitments for $46.5 billion to help finance the potential deal.
According to a new securities filing filed on Thursday, Elon Musk is exploring the possibility of submitting a tender offer on Twitter. In the filing, Musk said that given the lack of response from Twitter's board of directors, he is now looking into a tender offer to buy some or all of the company's shares directly from its shareholders.
According to the documents, Musk received $46.5 billion in commitments to fund the potential deal. He has secured about $25.5 billion in debt financing funded through Morgan Stanley Senior, Bank of America, Barclays, MUFG, Societe Generale, Mizuho Bank and BNP Paribas, while Musk himself has committed about $21 billion in equity financing.
At the moment, Musk has not yet decided whether he will make a tender offer for Twitter, however, he is considering it. Musk also revealed that he is considering other steps to advance his proposal.
On April 14, it became known that Musk offered to buy the remaining shares of Twitter he does not already own at $54.20 per share. That's a 54% premium over the day before he began investing in Twitter and a 38% premium over the day before his investment was publicly announced.
However, Twitter’s board executed a so-called “poison pill” measure. On April 15, Twitter's board voted in favor of such a plan, valid until April 14, 2023. This caused discontent among some investors, including influential ones. Florida Governor Ron DeSantis said the state could take action against Twitter Inc. for launching a poison pill defense to thwart Elon Musk's unsolicited bid. In his opinion, such behavior indicates a failure to fulfill fiduciary duties to the investors of the platform. DeSantis said Florida may have the legal standing to try to take action against Twitter because the state pension owns shares. As of December 31, the Florida State Board of Governors, which administers the state pension system, owned 949,690 Twitter shares.
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