by Sundance at The Conservative Treehouse
There is still doubt if Elon Musk really does want to purchase the Twitter social media platform. However, Musk himself seems to be putting a lot of his own credibility on the line as he announces the construct of his $46 billion purchase proposal.
It looks like Musk has created a second alternative to the purchase if the Twitter board of directors refuses the original offer. Within the secondary construct, a tender offer, Musk would be able to bypass the board and go directly to shareholders.
(YAHOO) – Elon Musk has secured commitments for $46.5bn (£35.5bn) that would allow him to bypass Twitter’s (TWTR) board and go directly to the social media company’s shareholders with his takeover bid.
Musk said he would personally provide $21bn of equity for the deal with another $12.5bn coming from margin loans, according to paperwork filed with the Securities and Exchange Commission on Thursday.
Banks, including Morgan Stanley, have agreed to provide another $13bn in debt secured against Twitter itself, according to the filing.
Musk has not yet determined if he will make a tender offer for Twitter or whether he will take other steps to further the proposal, the filing states.
Tender offers involve making a bid to purchase some or all shares of a company directly from its shareholders. (read more)
There are two ways to buy a publicly traded company…
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