Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Elon Musk’s Twitter Takeover Slightly Less of a Done Deal, Shares Suggest

Stock Markets Oct 06, 2022 20:26
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters
 
TSLA
-1.93%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
TWTR
+0.00%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

(Bloomberg) -- Stock markets are still not entirely sold on Elon Musk’s $44 billion takeover of Twitter Inc (NYSE:TWTR) after the billionaire revived the deal at its original price earlier this week.

Shares in the social media firm slipped 1.2% to $50.67 in premarket trading, taking them further below Musk’s offer of $54.20 a share. The stock is set to slip for a second day after soaring on Tuesday when the Tesla (NASDAQ:TSLA) chief made a surprising U-turn from his effort to back out of the deal, potentially avoiding a contentious courtroom fight.

While most analysts see the deal closing fairly quickly, concerns persist surrounding the funding of the transaction, keeping Twitter’s stock about 6.5% below the offer price.

Banks led by Morgan Stanley and investors including Oracle Chief Executive Officer Larry Ellison are reviewing the deal’s original $12.5 billion debt-financing package. Lenders may struggle to sell the risky Twitter buyout debt amid a deterioration in credit markets since they committed to the financing back in April.

“The key question is financing and Twitter will probably not accept conditional financing,” said Jean-Francois Comte, managing partner at merger arbitrage firm Lutetia Capital. “Because of credit market evolution over the past months, we can reasonably assume there are serious discussions between Musk and the banks,” said Comte, who still considers the deal attractive.

Wedbush analyst Dan Ives says he doesn’t see the debt situation around the deal falling apart, though some are more skeptical.

The most plausible reason for the deal not to proceed “revolves around funding issues,” said Neil Campling, an analyst at Mirabaud Securities. “He (Musk) will try and wriggle out.” 

©2022 Bloomberg L.P.

 

Elon Musk’s Twitter Takeover Slightly Less of a Done Deal, Shares Suggest
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email