💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Tesla and Wall Street: It's complicated

Published 08/09/2018, 09:28 AM
© Reuters.  Tesla and Wall Street: It's complicated
C
-
GS
-
TSLA
-
  • Major Wall Street banks and large Tesla (NASDAQ:TSLA) holders Fidelity and the Saudi Arabia wealth fund were "blindsided" by Elon Musk's tweets two days ago on taking the company private, according to The New York Times.
  • The NYT is also reporting that Tesla is exploring an alternative to a leveraged buyout in an action that has investment bankers salivating. "A full buyout is probably a nonstarter, but buying out enough shareholders to let the company delist its stock is more possible, and could be worth up to $20 billion" reasons the publication. That potential lucrative action already has firms like Goldman Sachs (NYSE:GS) and Citigroup (NYSE:C) scrambling to shoulder to the front of the line.
  • The huge investment banker fees hanging in the wind are also likely to throw an even brighter spotlight on some of the sell-side analysis from firms bidding for Tesla banking business. Meanwhile, on the Tesla side of the equation, the "going dark" scenario of buying out smaller shareholders in a LBO alternative almost assuredly requires (costly) help from investment bankers.
  • Shares of Tesla are down 1.20% premarket to $365.80.
  • Now read: Tesla's Silly Price


Original article

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.