Elon Musk has assembled financial commitments worth $46.5 billion to buy Twitter and said he is considering a tender offer – or going over management’s head to make his bid directly to shareholders — “but has not determined whether to do so at this time.”He said in an SEC filing Thursday that Twitter has not yet responded to his offer to buy the company for $54.20 per share, or about $43 billion.
The social media company did adopt a poison pill, or shareholders rights plan, that would make a hostile takeover more difficult.Musk said he has three commitment letters in hand all dated April 20 for financing the deal.
Two debt commitment letters are from Morgan Stanley and other financial institutions for, respectively, $13 billion and $12.5 billion.
An equity commitment from Musk himself would cover the amounts not funded by those two, currently expected to be approximately $21 billion.Musk made his offer to Twitter on April 13 after amassing a stake of 9.1% of the company and first toying with the idea of joining its board.
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