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Musk tweets cryptic phrase days after Twitter takeover offer (April 19)

Published 04/19/2022, 01:26 PM
Updated 04/20/2022, 01:25 PM
© Reuters. FILE PHOTO: Tesla CEO Elon Musk leaves Manhattan federal court after a hearing on his fraud settlement with the Securities and Exchange Commission (SEC) in New York City, U.S. April 4, 2019. REUTERS/Brendan McDermid
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(Reuters) - Billionaire entrepreneur Elon Musk tweeted a series of dashes for a missing word followed by "is the Night", days after he offered to buy Twitter Inc (NYSE:TWTR) for $43 billion.

The offer from Musk, who has hinted at the possibility of a hostile bid, has prompted the social media company to adopt a "poison pill" to protect itself.

Musk, who is also the chief executive of electric-vehicle maker Tesla (NASDAQ:TSLA) Inc, on Saturday tweeted "Love Me Tender", an Elvis Presley song, after Twitter opted for a plan to sell shares at a discount to prevent any attempt by shareholders to amass a stake of more than 15%. Musk currently has a 9.1% stake.

The New York Post on Tuesday reported Musk was willing to invest between $10 billion and $15 billion of his own money to take Twitter private, citing two sources familiar with the matter.

The billionaire, who is Twitter's second-biggest shareholder, is planning to launch a tender offer in about 10 days and has tapped Morgan Stanley (NYSE:MS) to raise another $10 billion in debt, according to the report https://nypost.com/2022/04/19/elon-musk-scrambles-to-find-backers-for-twitter-takeover-sources.

Musk may also be willing to borrow against his current stake if necessary, a move that could possibly raise several billion additional dollars, according to the New York Post report.

Twitter declined to comment. Tesla did not immediately respond to a Reuters request for comment from Musk.

More private-equity firms have expressed interest in participating in a deal for Twitter, people familiar with the matter told Reuters on Monday without naming the firm.

The interest emerged after Thoma Bravo, a technology-focused private-equity firm, contacted the social media platform last week to explore a buyout that would challenge Musk's offer.

Apollo Global Management (NYSE:APO) Inc is considering ways it can provide financing to any deal and is open to working with Musk or any other bidder, the sources told Reuters.

© Reuters. FILE PHOTO: Tesla CEO Elon Musk leaves Manhattan federal court after a hearing on his fraud settlement with the Securities and Exchange Commission (SEC) in New York City, U.S. April 4, 2019. REUTERS/Brendan McDermid

Many investors, analysts and investment bankers expect Twitter's board to reject Musk's offer in the coming days, saying it is inadequate.

(The story is updated to correct paragraph 3 to say Musk tweeted an Elvis Presley song on Saturday, not Monday)

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