According to a new securities filing, Elon Musk is exploring a tender offer for Twitter following the lack of formal response from their board for his $43 billion takeover offer.
This comes two days after Musk hinted about a potential tender offer, tweeting out “___ is the Night” (a likely reference to F. Scott Fitzgerald’s “Tender Is the Night”).
Tender is the night?
(Here we go?)
— unusual_whales (@unusual_whales) April 20, 2022
According to CNBC:
In an updated filing published Thursday, Musk said that given the lack of response from Twitter’s board, he is now exploring a tender offer to purchase some or all shares of the company directly from its stockholders.
The filing says Musk has received commitments for $46.5 billion to help finance the potential deal. Musk has 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 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.
A Twitter spokesperson confirmed the company received Musk’s proposal.
In response to Musk’s offer to buy the company for $54.20 a share, Twitter offered no formal rejection, but did deploy a poison pill that would allow them to issue new shares if anyone were to acquire 15% or more of Twitter. Specifically, the poison pill would allow all shareholders besides Musk to purchase 1/1000th of a Twitter preferred stock for each share of common stock they hold, which would effectively dilute Musk’s stake from 15% to under 2%.
Musk’s latest move appears to the the “Plan B” he had been teasing.
Matt Palumbo is the author of The Man Behind the Curtain: Inside the Secret Network of George Soros
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