Tesla and SpaceX CEO Elon Musk at the Tesla Gigafactory on March 22, 2022 in Grunheide, southeast of Berlin.
Patrick Pleul | AFP | Getty Images
Elon Musk is examining whether to launch a tender offer for Twitter, according to new securities documentation.
In an updated paper released Thursday, Musk said that, given the lack of response from the Twitter board, he is now examining a tender offer to buy some or all of the company’s shares directly from its shareholders.
The statement said Musk had received $ 46.5 billion in commitments to help fund a potential deal. Musk has secured about $ 25.5 billion in loan financing through Morgan Stanley Senior Funding and other firms, and he said he has allocated about $ 21 billion in equity financing. Other participating companies include Bank of America, Barclays, MUFG, Societe Generale, Mizuho Bank and BNP Paribas.
Musk has not yet decided whether to make a tender offer for Twitter and whether to take other steps to continue the offer, the filing said.
Representatives of Twitter did not immediately respond to a request for comment.
Last week, Musk offered to buy Twitter for $ 54.20 per share, or about $ 43 billion. On Friday, Twitter adopted a limited-term shareholder rights plan, often referred to as a “poison pill,” seeking to fend off potential hostile takeovers.
Musk, who is the CEO of Tesla and SpaceX, has amassed more than 9% of the company in recent weeks. Twitter then extended to Musk an offer to join the board, but provided that Musk would not be able to buy more than 14.9% of the company. Musk changed course and instead made an application to make Twitter private.
CNBC’s David Faber explained on Squawk on the Street that Musk would not be able to complete a tender offer for Twitter with protection against poison pills.
“You have to negotiate with the council,” Faber said. “It hasn’t happened yet.”
Musk first teased the tender offer on Monday when he posted a mysterious tweet with the caption “Love Me Tender”.
WATCH: Twitter is ready for shocks, says former director Ryan Sarver