The New York Post reported on Tuesday that Elon Musk is willing to invest between $10 billion and $15 billion of his own money to take Twitter private, citing two persons familiar with the situation.
According to the story, the billionaire, who owns 9.1% of Twitter, is intending to launch a tender offer in approximately 10 days and has enlisted Morgan Stanley to help him fund another $10 billion in debt.
According to the New York Post, Musk, who is also the CEO of Tesla Inc, may be willing to borrow against his present ownership if necessary, a move that might raise several billion dollars.
Twitter did not respond to requests for comment. Musk did not respond to a request for comment from Reuters right away.
Last week, Facebook implemented a “poison pill” to shield itself from Musk’s $43 billion buyout offer.
People familiar with the subject told Reuters on Monday that more private-equity firms have indicated interest in engaging in an offer for Twitter, without naming the business.
Last week, Thoma Bravo, a technology-focused private equity group, contacted the social networking site to discuss a takeover that would compete with Musk’s offer.
According to Reuters, Apollo Global Management Inc is looking at methods to fund any acquisition and is willing to work with Musk or any other bidder.
Many investors, analysts, and investment bankers believe that Twitter’s board of directors will reject Musk’s offer in the coming days, claiming that it is insufficient.
In afternoon trading, Twitter shares were down 1.6 per cent at $47.69, significantly below Musk’s offer of $54.20.
(Adapted from EconomicTimes.com)