Days after Twitter adopted the ‘poison pill’ defense to wield Elon Musk’s hostile takeover of the company, the SpaceX and Tesla CEO is planning to invest between $10 billion and $15 billion of his own money, to acquire Twitter, Newyork Post reported citing sources.
The report said, Musk is planning to offer a tender offer within 10 days and has roped in investment banking firm Morgan Stanley to raise as much as $10 billion in debt against Twitter, in the manner of a traditional leveraged buyout. Notably, a major chunk of investment worth $20 billion will come from co-investors who will make a tender offer directly to Twitter shareholders, as per the report.
Last week, Musk proposed to buy Twitter worth $41.39 billion. He offered $54.20 per share, at a 38 per cent premium to the closing price of Twitter’s stock on April 1, the last trading day before Musk bought the majority stake in the company. In a letter to Twitter Chairman Bret Taylor, Musk said, “My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder.”
Following this, the shareholders of the company either rejected Musk’s proposal or said that the Twitter buyout price is very low.
Musk is the second-largest shareholder of the microblogging site, acquiring a 9.2 per cent stake in the company. Musk made a passive investment of 73.5 million shares of common stock in his personal capacity.
Musk who is the richest man in the world, according to Forbes, has a net worth of $270 billion.