Last week, Musk announced an offer to buy the social media company for
The
But Musk hasn't decided yet whether to do that.
The documents filed with the
Twitter said in a statement Thursday that it has received Musk’s updated proposal and its “new information on potential financing.”
The company said its board is “committed to conducting a careful, comprehensive and deliberate review to determine the course of action that it believes is in the best interest of the company and all Twitter stockholders.”
Last week Twitter's board adopted a “poison pill” defense that could make a takeover attempt prohibitively expensive.
The financing would come from Morgan Stanley and other financial institutions. Other banks involved include Barclays, Bank of America, Societie Generale,
Musk said that
Musk is the world’s wealthiest man, according to Forbes, with a nearly
Electric car and solar panel maker
Getting financing from big banks brings a lot of credibility to Musk’s bid, said
“This isn’t just Musk antics,” Ives said. “Banks were going to line up for this deal from the richest person in the world. The fact they they pulled it together this quick shows that Musk isn’t joking around. This is a real bid.”
Ives said the tender offer puts more pressure on Twitter’s board to find a second bidder or go to the negotiating table with Musk. “It’s a way to get around the poison pill and let shareholders speak,” he said.
A
Shares of Twitter fell slightly to
Musk “is seeking to negotiate a definitive agreement for the acquisition of Twitter ... and is prepared to begin such negotiations immediately,” the documents say.
With a tender offer, Musk would try to get other shareholders to pledge their stock to him at a certain price on a certain date. If enough shareholders agree, Musk could use that as leverage to get the board to drop the poison pill defense.
Experts say the poison pill essentially would spell the end of Twitter if Musk or another investor acquires 15% or more of the company. Under the poison pill, stockholders would get rights to buy preferred stock at
Musk signaled the possibility of a tender offer several times this week in tweets using the word “tender.”
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