Elon Musk is exploring whether to commence a tender offer for Twitter, according to a new securities filing.
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 include Bank of America, Barclays, MUFG, Societe Generale, Mizuho Bank and BNP Paribas.
Musk has not yet determined 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.
“As previously announced and communicated to Mr. Musk directly, the 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,” the spokesperson said in a statement.
Last week, Musk offered to buy Twitter for $54.20 a share, or about $43 billion. On Friday, Twitter adopted a limited duration shareholder rights plan, often referred to as a “poison pill,” in an effort to fend off a potential hostile takeover.
Musk, who’s CEO of Tesla and SpaceX, in recent weeks has amassed a more than 9% stake in the company. Twitter then extended an offer to Musk to join the board, but on the condition that Musk couldn’t buy more than 14.9% of the firm. Musk reversed course and instead made a bid to take Twitter private.
CNBC’s David Faber explained on “Squawk on the Street” that Musk will be unable to finalize a tender offer for Twitter with the poison pill defense in place.
“You have to have a negotiation with the board,” Faber said. “That is yet to happen.”
Musk first teased a tender offer on Monday, when he posted a cryptic tweet that said “Love Me Tender.”
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