Elon Musk in talks to fund Twitter’s takeover offer

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Posted on: Wednesday, April 20, 2022 – 10:05 PM | Last update: Wednesday, April 20, 2022 – 10:05 PM

An informed source said that American billionaire Elon Musk has started contacts with potential partners of American financial institutions to provide the necessary funding for his offer to acquire the social networking site Twitter for $43 billion.

And the Bloomberg news agency quoted the source as saying that Musk, the owner and president of the American electric car maker Tesla, had held talks with his advisers regarding an agreement with potential partners to finance the deal.

Bloomberg indicated that while Musk is the richest person in the world with a fortune estimated at $261 billion, most of his wealth is shares in Tesla, and therefore he may not have enough cash to acquire Twitter.

The American newspaper, “The Wall Street Journal”, had quoted informed sources as saying that the financial investment company “Apollo Global Management” is considering participating in Elon Musk’s bid to acquire Twitter.

On the other hand, Twitter’s board of directors last week approved a plan called the “poison pill” to prevent Elon Musk’s acquisition of the company and deregister its shares in the stock exchange.

The US Securities and Exchange Commission confirmed Twitter’s plan to address the takeover attempt, which includes the issuance of Twitter a new amount of shares that all its shareholders except for Musk can buy at a discount.

The plan also includes “imposing a significant penalty” on any person or entity that acquires more than 15% of Twitter’s shares without obtaining the approval of the board of directors. Musk currently owns more than 9% of Twitter’s shares.

Twitter said in a statement, “The board of directors adopted the shareholders’ equity plan following the arrival of a non-binding offer to acquire Twitter, and the rights plan expires on April 14, 2023.

The rights plan reduces the possibility of any entity, person, or group acquiring a controlling share of Twitter shares through the cumulative purchase of its shares on the open market, without paying a price higher than the market price of the share to all shareholders, or without giving the board of directors sufficient time to reach a sound decision and take The necessary steps to achieve the interests of shareholders.