Elon Musk has told the banks funding part of his Twitter takeover that he expects to close the deal by Friday, a deadline set by a Delaware state court judge.
The billionaire announced the news during a video call on Tuesday (October 25) with his bankers, according to Bloomberg, citing sources familiar with the matter.
Morgan Stanley, Bank of America and Barclays are the main financiers, each agreeing to pay the minus $2.5 billion in debt financing. Banks will set aside cash by Thursday, according to Bloomberg.
Elon Musk has until Friday to finalize the takeover, failing which he would be forced to face Twitter in a lawsuit before the Court of Chancery (Court of Chancery) of Delaware in the company’s lawsuit to force the takeover.
In total, Elon Musk got $12.5 billion in loans from banks, with the rest of the funds coming from his own cash, which swelled as he sold tens of billions of dollars of Tesla stock, and from a series of equity investors, including billionaires Marc Andreesen and larry ellison and the Qatar Sovereign Wealth Fund. In April Twitter accepted Elon Musk’s unsolicited offer to take the company private for $54.20 a share, before the parties became embroiled in a six-month legal tussle after Elon Musk tried to withdraw from the agreement.
According to Wall Street Journal and Reutersthe banks plan to keep the $13 billion in debt for now, having faced a likely loss of $500 million on the sale, which is a rare metric for debt financiers. This would make this operation the largest ever, according to Business Insider.
“They are big boys, they can deal with this,” said Chase Dimonof JPMorgan, told CNBC earlier this month when asked about rivals facing a massive loss with Twitter.
Article translated from Forbes US – Author: Derek Saul
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