Investors fret over potential Musk U-turn in $44-B Twitter buyout

  • 📰 rapplerdotcom
  • ⏱ Reading Time:
  • 46 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 22%
  • Publisher: 86%

Philippines Headlines News

Philippines Latest News,Philippines Headlines

Musk will have to pay a $1-billion breakup fee if he doesn't complete his acquisition but the amount is only a sliver of his $240-billion fortune.

Investors speculating over whether Elon Musk will complete his $44 billion acquisition of Twitter Inc sent the social media company’s shares on Wednesday, April 27, to their lowest level since the deal was announced two days ago.

He has backtracked before. Earlier this month, he decided at the last minute not to take up a seat on Twitter’s board. In 2018, Musk tweeted that there was “funding secured” for a $72 billion deal to take Tesla private, but did not move ahead with an offer. “There’s a lot of headline risk over the next six months that it takes to complete the deal,” said Chris Pultz, portfolio manager for merger arbitrage at Kellner Capital.Twitter shares ended trading in New York down 2.1% at $48.68, a big discount to the $54.20 deal price, implying a 62% chance of the deal being completed, according to Reuters calculations.

Musk could calm some of the market jitters by providing more details on the source of his equity financing or bring in partners to help split the check. This, however, could introduce new risks to the deal based on the identity of these partners, some fund managers said.

Source: News Formal (newsformal.com)

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 4. in PH

Philippines Latest News, Philippines Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Twitter-Musk deal includes $1 billion termination fee —filingElon Musk will have to pay Twitter Inc (TWTR.N) a fee of $1 billion if the billionaire terminates his $44 billion cash deal for the social media company, it said in a filing on Tuesday.
Source: gmanews - 🏆 11. / 68 Read more »

Twitter CEO tells employees company is in the dark over future under MuskTwitter Chief Executive Parag Agrawal tells employees the future of the social media firm is uncertain after the deal to be taken private under billionaire Elon Musk closes.
Source: rapplerdotcom - 🏆 4. / 86 Read more »

A Musk-owned Twitter opens door to potential Trump returnNEW YORK: Four days after Twitter permanently suspended Donald Trump's account on January 8, 2021, the then-US president's son pleaded with entrepreneur Elon Musk to...
Source: TheManilaTimes - 🏆 2. / 92 Read more »

As Musk plans how to change Twitter, EU reminds him: 'We have rules'The EU has rules under which content forbidden offline is also forbidden online, says EU internal market chief Thierry Breton.
Source: rapplerdotcom - 🏆 4. / 86 Read more »

Twitter CEO set to receive $42 million if terminated after Musk dealTwitter Inc CEO Parag Agrawal would get an estimated $42 million if he were terminated within 12 months of a change in control at the social media company, according to research firm Equilar. | Reuters
Source: inquirerdotnet - 🏆 3. / 86 Read more »